Current Attempt in Progress

On December $31,2024,$ Larkspur Corporation signed a $5-$year, non$-$cancelable lease for a machine. The terms of the lease called for Larkspur to make annual payments of $$9,318$ at the beginning of each year, starting December $31,2024.$ The machine has an estimated useful life of $6$ years and a $$5,500$ unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Larkspur uses the straight$-$line method of depreciation for all of its plant assets. Larkspur's incremental borrowing rate is $6\%,$ and the lessor's implicit rate is unknown.

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$($a$)$

$($b$).$

$($c$)$

Prepare all necessary journal entries for Larkspur for this lease through December $31,2025.($List all debit entries before credit entries. Record journal entries in the order presented in the problem. 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 e$.$g$.5,275.)$

Date

Account Titles and Explanation

Debit

Credit