On December $31,2024,$ Splish Brothers Corporation signed a $5-$year, non$-$cancelable lease for a machine. The terms of the lease called $($b$)$

Your answer is correct.

Compute the present value of the lease payments. $($For calculation purposes, use $5$ decimal places as displayed in the factor table

provided and round final answer to $0$ decimal places e$.$g$.5,275.)$

Present value of the lease payments Prepare all necessary journal entries for Splish Brothers 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$.5,275.)$

Account Titles and Explanation

Credit

$($To record the lease$)$

$[]$

$($To record first lease payment$)$

$($To record amortization of the right$-$of$-$use asset$)$

for Splish Brothers to make annual payments of $$8,634$ at the beginning of each year, starting December $31,2024.$ The machine has an

estimated useful life of $6$ years and a $$4,900$ unguaranteed residual value. The machine reverts back to the lessor at the end of the

lease term. Splish Brothers uses the straight$-$line method of depreciation for all of its plant assets. Splish Brothers's incremental

borrowing rate is $6\%,$ and the lessor's implicit rate is unknown.