Rauch Incorporated leases a piece of equipment to Donahue Corporation on January 1, 2025. The lease agreement called for annual rental payments of $4,892 at the beginning of each year of the 4 -year lease. The equipment has an economic useful life of 6 years, a fair value of $25,000, a book value of $20,000, and both parties expect a residual value of $8,250 at the end of the lease term, though this amount is not guaranteed. Rauch set the lease payments with the intent of earning a 5% return, and Donahue is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the foctor table provided.) Suppose Donahue incurs initial direct costs of $750 related to the lease. Prepare the journal entries for 2025 . (List all debit entries before credit entries. Credit account titles are outomatically indented when the 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 O for the amounts.)