On January $1,2025.$ Riverbed Company contracts to lease equipment for $5$ years, agreeing to make a payment of $$141,542$ at the beginning of each year, starting January $1,2025.$ The leased equipment is to be capitalized at $$632,000.$ The asset is to be mortized on a double$-$declining$-$balance basis, and the obligation is to be reduced on an effective$-$interest basis. Riverbed's incremental borrowing rate is $7\%,$ and the implicit rate in the lease is $6\%,$ which is known by Riverbed. Title to the equipment transfers to Riverbed at the end of the lease. The asset has an estimated useful life of $5$ years and no residual value.

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$($b$)$

Prepare the journal entries that Riverbed should record on January $1,2025.($Credit account titles are qutomatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry' for the account tilles and enter $0$ for the amounts. List? all debit entries before credit entries. For calculation purposes, round factor value calculations to $5$ decimal places, es$.0\mathrm{.}52752$ Round final answers to O decimal place, es$.5,275.)$

Date Account Titles and Explanation

Debit

Credit

Januan

$1,2025$

$($To record the lease.$)$

$($To record lease payment.$)$