On January $1,2024,$ Lesco Leasing leased equipment to Quality Services under a finance$/$sales$-$type lease designed to earn Lesco a

$14\%$ rate of return for providing long$-$term financing. The lease agreement specified:

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

Ten annual payments of $$59,000$ beginning January $1,2024,$ the beginning of the lease and each December $31$ thereafter through

$2032.$

b$.$ The estimated useful life of the leased equipment is $10$ years with no residual value. Its cost to Lesco was $$321,104.$

c$.$ The lease qualifies as a finance lease$/$sales$-$type lease.

d$.$ A $10-$year service agreement with Quality Maintenance Company was negotiated to provide maintenance of the equipment as

required. Payments of $$5,000$ per year are specified, beginning January $1,2024.$ Lesco was to pay this cost as incurred, but lease

payments reflect this expenditure. Also included in the $$59,000$ payments is an insurance premium of $$4,000$ providing coverage

for the equipment.

Required:

Prepare the appropriate entries for both the lessee and lessor related to the lease on January $1,2024.$

Prepare the appropriate entries for both the lessee and lessor related to the lease on December $31,2024.$

Complete this question by entering your answers in the tabs below.

Prepare the appropriate entries for both the lessee and lessor related to the lease on January $1,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate

and final answers to nearest whole dollar.

Journal entry worksheet

Record the beginning of the lease for Quality Services.

Note: Enter debits before credits.