On July 1, 2023, Sandhill Corp., which uses IFRS, signs a 4-year, non-cancellable lease agreement to lease a equipment from Carla Vista Ltd. The following information concerns the lease agreement. 1. The equipment's fair value on July 1,2023 is $268,000. 2. The agreement requires equal rental payments of $58,300.00 beginning on July 1,2023. 3. The equipment has an estimated economic life of 5 years, with an unguaranteed residual value of $79,400. Sandhill Corp. depreciates similar equipment using the straight-line method, with no residual value. 4. The lease is non-renewable. At the termination of the lease, the equipment reverts to Carla Vista. 5. Sandhill's incremental borrowing rate is 6% per year. The lessor's implicit rate is not known by Sandhill Corp. 6. The yearly rental payment includes $4.937.80 of executory costs related to insurance on the equipment. Prepare the journal entries on Sandhill Corp's books to record the payments and expenses related to this lease for the years 2023 and 2024 as well as any adjusting journal entries at its fiscal year ends of December 31, 2023 and 2024. Sandhill does not use reversing entries. (List all debit entries before credit entries. Credit account titles are outomatically Indented when the amount is entered. Do not indent manuaily. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, es. 5,125.76. Record journal entries in the order presented in the problem.) June 30,2024 Interest Expense Prepaid insurance Lease Liability Cash Dec.31,2024 v Insurance Expense Prepaid Insurance (To record insurance expense) Dec31,2024 Depreciation Expense : Accumulated Depreciation - Right-of-Use Asset Dec.31, 2024 Insurance Expense Prepaid Insurance (To record insurance expense) Depreciation Expense Accumulated Depreciation - Right-of-Use Asset (To record depreciation) Dec. 31,2024 Interest Expense Lease Liability (To record interest)