Current Attempt in Progress

Assume that IBM leased equipment that was carried at a cost of $$173,000$ to Oriole Company. The term of the lease is $6$ years beginning December $31,2024,$ with equal rental payments of $$30,400$ beginning December $31,2024.$ The fair value of the equipment at commencement of the lease is $$151,778.$ The equipment has a useful life of $6$ years with no salvage value. The lease has an implicit interest rate of $8\%,$ no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable.

Prepare IBM's December $31,2024,$ journal entries at commencement of the lease. $($List ail debit entries before credit entries. Credit account tilles are automatically indented when amount is entered. Do not indent manually. If no enity is required, select" $"$No Entry" for the account titles and enter Ofor the amounts, For calculation purposes, use $5$ decinal places as displayed in the factor table provided and round finol answers to $0$ decimal places es $5,275.)$

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December $31,2024$

MacBook Air