Southwestern Edison Company leased equipment from Hi$-$Tech Leasing on January $1,2024.$ Hi$-$Tech manufactured the equipment at a cost of $$88,000.$

Other information:

Lease term $4$ years

Annual payments $$36,000$ on January $1$ each year

Life of asset $4$ years

Fair value of asset $$128,776$

Implicit interest rate $8\%$

Incremental rate $8\%$

There is no expected residual value.

Required:

Prepare appropriate journal entries for Hi$-$Tech Leasing for $2024.$ Assume a December $31$ year$-$end.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.