On January $1,2025,$ Cullumber Animation sold a truck to Ivanhoe Finance for $$43,000$ and immediately leased it back. The truck was

carried on Cullumber's books at $$35,000.$ The term of the lease is $5$ years, there is no bargain purchase option, and title does not

transfer to Cullumber at lease$-$end. The lease requires five equal rental payments of $$9,659$ at the end of each year $($first payment on

January $1,2026).$ The appropriate rate of interest is $4\%,$ the truck has a useful life of $5$ years, with no expected residual value at the end

of the lease term.

Prepare Cullumber's $2025$ journal entries. $($List all debit entries before credit entries. Credit account titles are automatically indented when

the 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. For

calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places, e$.$g$.5,275.$

Record journal entries in the order presented in the problem.$)$

Click here to view factor tables.

Date

Account Titles and Explanation

Debit

Credit