The lease agreement and related facts indicate the following: Leased equipment had a retail cash selling price of $340,000. Its useful life was five years with no residual value. The lease term is Six years and the lessor paid $285,000 to acquire the equipment (thus, selling profit). Lessors implicit rate when calculating annual lease payments was 10%. Annual lease payments beginning January 1, 2018, the beginning of the lease, were $70,970. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $7,900.

Required: 1. & 2. Prepare the appropriate entries for the lessor to record the lease and the initial payment at its commencement and any entry(s) necessary at December 31, 2018, the fiscal year-end. (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.)