On December $31,2024,$ Teal Mountain Corporation signed a $5-$year, non$-$cancelable lease for a machine. The terms of the lease called for Teal Mountain to make annual payments of $\backslash (\backslash$$ $8,634\backslash )$ at the beginning of each year, starting December $31,2024.$ The machine has an estimated useful life of $6$ years and a $\backslash$$$4,900$ unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Teal Mountain uses the straight$-$line method of depreciation for all of its plant assets. Teal Mountain's incremental borrowing rate is $\backslash (8\backslash \%\backslash ),$ and the lessor's implicit rate is unknown.

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$($a$)$

$($b$)$

$($c$)$

Prepare all necessary journal entries for Teal Mountain 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

Debit

$($To record the lease$)$

$($To record first lease payment$)$

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