Sunland Corporation enters into a $5-$year lease of equipment on December $31,2024,$ which requires $5$ annual payments of $$36,000$ each, beginning December $31,2024.$ In addition, Sunland guarantees the lessor a residual value of $$19,900$ at the end of the lease. However, Sunland believes it is probable that the expected residual value at the end of the lease term will be $$9,950.$ The equipment has a useful life of $5$ years.

Prepare Sunlands' December $31,2024,$ journal entries, assuming the implicit rate of the lease is $10\%$ and this is known to Sunland. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired,select $"$No Entry" for the account titles and enter $0$ for the amounts. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answersto $0$ decimal places e$.$g$.5,275.)$

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Date Account Titles and Explanation Debit Credit

December

$31,2024$ Right$-$of$-$Use Asset

Lease Liability

$($To record the lease liability$)$

December

$31,2024$ Lease Liability

Cash

$($To record lease payment$)$