On January $1,2024,$ QuickStream Communications leased telephone equipment from Digium, Incorporated Digium$$s cash selling price for the equipment is $$1,614,931.$

The lease agreement specifies six annual payments of $$360,000$ beginning December $31,2024,$ and on each December $31$ thereafter through $2029.$

The six$-$year lease is equal to the estimated useful life of the equipment.

The contract specifies that lease payments for each year will increase by the higher of $($a$)$ the increase in the Consumer Price Index for the preceding year or $($b$)3\%.$

The CPI at the beginning of the lease is $150.$ Digium routinely leases equipment to other firms.

The interest rate in these lease arrangements is $9\%.$

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 journal entries for QuickStream to record the lease at its beginning date of 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 the nearest whole dollar.Steps for How to post a question