Sage Hill Corporation recorded a right-of-use asset for $312,900 as a result of a finance lease on December 31 , 2024. Sage Hill's incremental borrowing rate is 11%, and the implicit rate of the lessor was not known at the commencement of the lease. Sage Hill made the first lease payment of $59,822 on December 31,2024 . The lease requires 7 annual payments. The equipment has a useful life of 7 years with no residual value. Prepare Sage Hill's December 31, 2025, entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 5,275.) Sage Hill Corporation recorded a right-of-use asset for $312,900 as a result of a finance lease on December 31 , 2024. Sage Hill's incremental borrowing rate is 11%, and the implicit rate of the lessor was not known at the commencement of the lease. Sage Hill made the first lease payment of $59,822 on December 31,2024 . The lease requires 7 annual payments. The equipment has a useful life of 7 years with no residual value. Prepare Sage Hill's December 31, 2025, entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 5,275.)