The lease agreement and related facts indicate the following:

1. Leased equipment had a retail cash selling price of $330,000. Its useful life was five years with no residual value.
2. The lease term was five years and the lessor paid $280,000 to acquire the equipment (thus, selling profit).
3. Lessors implicit rate when calculating annual lease payments was 9%.
4. Annual lease payments beginning January 1, 2024, the beginning of the lease, were $77,835.
5. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $7,800.

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 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.