Recording Finance Lease Journal Entries$-$Nonlease and Initial Direct Costs

Frontier Inc. enters into an eight$-$year lease contract to lease equipment with a useful life of eight years. Annual lease payments are due with the first payment made immediately on January $1,$ the commencemen of the lease. No residual value is expected or guaranteed for the underlying equipment. Lease payments consist of $($a$)$ fixed lease payment of $$33,000,($b$)$ insurance on the equipment of $$1,000,$ and $($c$)$ maintenanc on the equipment of $$1,200.$ Frontier Inc. also paid legal fees of $$850$ related to the execution of the lease or January $1.$

Prepare Frontier's three journal entries at the commencement of the finance lease to record $(1)$ lease asset and liability, $(2)$ lease payment, and $(3)$ maintenance cost, assuming an implicit interest rate of $6\%,$ known by Frontier.

Note: Round your answers to the nearest whole dollar.

$\backslash$table$[[$Date$,$Account Name,,Dr$.,$Cr$.],[1)$ Jan. $1,$Right$-$of$-$Use Asset,v$,238,940,0],[$Lease Liability,$,0,935],[$Cash$,,0,35,200],[$To record lease asset and liability.,,,$],[2)$ Jan. $1,$Lease Liability,$vv,34,000,0],[$Cash$,$v$,0,34,000],[$To record cash lease payment,,,$],[3)$ Jan. $1,$Prepaid Maintenance Expense,$,1,200,0],[$Cash$,v,0,1,200],[$To record cash maintenance paymer,,,$]]$