The following relate to an operating lease agreement:

a.	The lease term is 3 years, beginning January 1, 2016.
b.	The leased asset cost the lessor $780,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets.
c.	Annual lease payments at the beginning of each year were $130,500.
d.	Costs of negotiating and consummating the completed lease transaction incurred by the lessor were $5,250.

Required:

Prepare the appropriate entries for the lessor from the inception of the lease through the end of the lease term. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the cash received.

Record the payment of initial direct costs.

Record the cost of the lease.

Record the depreciation expense.

Record the rent revenue.

Record the cash received.

Record the cost of the lease.

Record the depreciation expense.