On January 1, 2025, Kingbird Co. leased a building to Blossom Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,500,000 (unguaranteed). 2. The leased building has a cost of $3,000,000 and was purchased for cash on January 1, 2025. 3. The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. 4. Lease payments are $255,000 per year and are made at the beginning of the year. 5. Blossom has an incremental borrowing rate of 9%, and the rate implicit in the lease is unknown to Blossom. 6. Both the lessor and the lessee are on a calendar-year basis. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. Prepare the journal entries that Kingbird should make in 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (To record cost of the building) 1/25 Cash 255000 Unearned Lease Revenue (To record receipt of lease payment) Unearned Lease Revenue 255000 Lease Revenue (To record the recognition of the revenue each period) Depreciation Expense 60000 Accumulated Depreciation-Leased Building (To record depreciation expense on the leased asset) Prepare the journal entries that Blossom should make in 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (To record the lease) Lease Liability Cash (To record lease payment) Lease Expense 255000 Right-of-Use Asset Lease Liability \begin{tabular}{r|} \hline 114640 \\ \hline 140360 \\ \hline \end{tabular}