Natick Industries leased high$-$tech instruments from Framingham Leasing on January $1,2024.$ Natick has the option to renew the lease at the end of two years for an additional three years. Natick is subject to a $$45,000$ penalty after two years if it fails to renew the lease. Framingham Leasing purchased the equipment from Waltham Machines at a cost of $$250,177.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Prepare appropriate entries for Natick Industries from the beginning of the lease through March $31,2024.$ Appropriate adjusting entries are made quarterly.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar.

Journal entry worksheet