Question: On December 3 1 , 2 0 2 4 , Shamrock corporation signed a 5 - year, non - cancelable lease for a machine. The

On December 31,2024, Shamrock corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Shamrock to make annual payments of $8,215 at the beginning of each year, starting December 31,2024. The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Shamrock uses the straight-line method of depreciation for all of its plant assets. Shamrock's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. Prepare all necessary journal entries for shamrock for this lease through December 31,2025.

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