Shamrock Leasing Company signs a lease agreement on January $1,2025,$ to lease electronic equipment to Pharoah Company. The term of the non$-$cancelable lease is $2$ years, and payments are required at the end of each year. The following information relates to this agreement.

Pharoah has the option to purchase the equipment for $$23,000$ upon termination of the lease. It is not reasonably certain that Pharoah will exercise this option.

The equipment has a cost of $$260,000$ and fair value of $$290,000$ to Shamrock Leasing. The useful economic life is $2$ years, with a residual value of $$23,000.$

Shamrock Leasing desires to earn a return of $5\%$ on its investment.

Collectibility of the payments byshamrock Leasing is probable.

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$($a$)$

Prepare the journal entries on the books of Shamrock Leasing to record the payments received under the lease and to recognize income for the years $2025$ and $2026.($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $O$ for the amounts. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places e$.$g$.5,275.)$

Date

Account Titles and Explanation

Debit

Credit