Terms of a lease agreement and related facts were as follows:

1. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $4,242.
2. The retail cash selling price of the leased asset was $500,000. Its useful life was three years with no residual value.
3. The lease term was three years and the lessor paid $500,000 to acquire the asset.
4. Annual lease payments at the beginning of each year were $184,330.
5. Lessors implicit rate when calculating annual rental payments was 11%.

(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2021.