The lease agreement and related facts indicate the following: Journal entry worksheet

$1$

$3$

$4$

Record the initial direct costs.

Note: Enter debits before credits. Journal entry worksheet

Record the cash received.

Note: Enter debits before credits. Journal entry worksheet

$1$

$2$

$3$

$4$

Record accrued interest.

Note: Enter debits before credits.

a$.$ Leased equipment had a retail cash selling price of $$310,000.$ Its useful life was six years with no residual value.

b$.$ The lease term was six years and the lessor paid $$270,000$ to acquire the equipment $($thus$,$ selling profit$).$

c$.$ Lessor's implicit rate when calculating annual lease payments was $7\%.$

d$.$ Annual lease payments beginning January $1,2024,$ the beginning of the lease, were $$60,782.$

e$.$ Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the

lessor were $$7,600.$

Required:

& $2.$ Prepare the appropriate entries for the lessor to record the lease and the initial payment at its commencement and any entry$($s$)$

necessary on December $31,2024,$ the fiscal year$-$end.

Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the lease.

Note: Enter debits before credits.