Waterworld Company leased equipment from Costner Company, beginning on December $31,2024.$ The lease term is $4$ years and requires equal rental payments of $$41,933$ at the beginning of each year of the lease, starting on the commencement date $($December $31,2024).$ The equipment has a fair value at the commencement date of the lease of $$150,001,$ an estimated useful life of $4$ years, and no estimated residual value. The appropriate interest rate is $8\%.$

Prepare Waterworld$$s $2024$ and $2025$ journal entries, assuming Waterworld depreciates similar equipment it owns on a straight$-$line basis