On January $1,2024,$ NRC Credit Corporation leased equipment to Brand Services under a finance$/$sales$-$type lease designed to earn Answer is not complete.

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Required $1$

Prepare the appropriate entries for the lessee related to the lease on January $1,2024$ and December $31,2024.$

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

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,$January $01,2024,$Right$-$of$-$use asset,$\backslash$gamma $,422,439,],[,$Lease payable,grad,,$422,439],[2,$January $01,2024,$Lease payable,$,62,500,],[,$Maintenance expense,$\backslash$gamma $,,],[,$Cash,$\backslash$gamma $,,],[3,$December $31,202,$Cash,x$,69,000\backslash$times $,],[,$Lease payable,$\backslash$gamma $,,26,506\backslash$times $],[,$Interest expense,grad,,$35,994\backslash$times $],[4,$December $31,202,$Amortization expense,V$,42,243\backslash$times $,],[,$Cash,x$,,42,243\backslash$times $]]$ Prepare the appropriate entries for the lessor related to the lease on January $1,2024$ and December $31,2024.$

Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field.

NRC a $10\%$ rate of return for providing long$-$term financing. The lease agreement specified the following:

Ten annual payments of $$69,000$ beginning January $1,2024,$ the beginning of the lease and each December $31$ thereafter

through $2032.$

The estimated useful life of the leased equipment is $10$ years with no residual value. Its cost to NRC was $$422,439.$

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

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

required. Payments of $$6,500$ per year are specified, beginning January $1,2024.$ NRC was to pay this cost as incurred, but lease

payments reflect this expenditure.

A partial amortization schedule, appropriate for both the lessee and lessor, follows:

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 the appropriate entries for the lessee related to the lease on January $1,2024$ and December $31,2024.$

Prepare the appropriate entries for the lessor related to the lease on January $1,2024$ and December $31,2024.$