Sunland Corporation manufactures drones. On December 31, 2024, it leased to Sheridan Company a drone that had cost $106,600 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $40,500 payable each December 31, beginning December 31, 2024. An interest rate of 8% is implicit in the lease agreement. Collectibility of the rentals is probable, Prepare Sunland's December 31, 2024, journal 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 O for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places eg. 5.275) Click here to view factor tables. Date December 31, 2024 Account Titles and Explanation (To record the lease) Debit Credit December 31, 20241 December 31, (To record the lease) 2024 (To record receipt of lease payment)