On January $1,$ Year $1,$ Robin Corp. signs a contract to lease non$-$specialized manufacturing equipment from Owl, Inc. Robin agrees to make lease payments of $$36,000$ per year, Additional information pertaining to the lease is as follows:

The term of the noncancelable lease is four years. Payments are due every December $31,$ beginning December $31,$ Year $1.$ Owl expects to collect all lease payments.

The fair value of the manufacturing equipment on January $1,$ Year $1,$ is $$150,000.$ The equipment has an economic life of seven years.

The equipment has an estimated residual value of $$15,000$ at the end of the lease term. This amount is not guaranteed by Robin.

Both Robin and Owl depreciate similar assets using the straight$-$line method.

Robin's incremental borrowing rate is $8\%$ per year; Owl's implicit interest rate is $6\%$ and is known by Robin.

Robin pays $$1,100$ per year for maintenance of the equipment directly to an applicable third party.

Assume that this is an operating lease and prepare journal entries for Owl $($the lessor$)$ for the entire lease.

Round your answers to the nearest cent and use the rounded answer for the subsequent calculations.

Lease Liability

Dec. $31q,$

Dec. $31$ Interest Revenue

Lease Liability

Year $2$

Dec. $31$