The lease agreement and related facts indicate the following: a. Leased equipment had a retail cash selling price of $300,000. Its useful life was five

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The lease agreement and related facts indicate the following:
a. Leased equipment had a retail cash selling price of $300,000. Its useful life was five years with no residual value.
b. The lease term is five years and the lessor paid $265,000 to acquire the equipment (thus, selling profit).
c. Lessor's implicit rate when calculating annual lease payments was 8%.
d. Annual lease payments beginning January 1, 2018, the beginning of the lease, were $69,571.
e. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $7,500.
Required:
Prepare the appropriate entries for the lessor to record:
1. The lease and the initial payment at its commencement.
2. Any entry(s) necessary at December 31, 2018, the fiscal year-end.