the paryment schedule is $4\%$; Blassom's incremental borrowing rate is $6\%.$ Blossam is unaware of the rate being used by the lessor. At

the end of the lease, Blossom has the aption to buy the equipment for $$5,000,$ considerably below its estimated fair value at that time.

The equipment has an estimated useful life of $7$ years, with no salvage value. Blossom uses the straight$-$line method of depreciation on

similar cowned equipment.

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Prepare the journal entries, that Blassom should record on December $31,2025.($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts Round present value factar colevilations to $5$ decimal places, eg$.125124$ and the final answers to $0$ decimal places, e$.58,971.$

List all debit entries before credit entries.

Prepare the journal entries, that Blassom should record on December $31,2026.($Credit account titles ore automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts. List all debit entries before cred$$t entries:

Prepare the journal entries, that Blassom should record on December $31,2027.($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts. Round answers to $0$ decimal places eg$.58,971.$ List all debit entries before credit entries.$)$

What amounts would appear on Blossom's December $31,2027,$ balance sheet relative to the lease arrangement? $($Round answers

to $0$ decimal places, e$.58,971,$