Problem $15-5($Algo$)$ Lessee; operating lease; advance payment; leasehold improvement $[$LO$15-4]$

On January $1,2024,$ Winn Heat Transfer leased office space under a three$-$year operating lease agreement. The arrangement specified three annual lease payments of $$111,000$ each, beginning December $31,2024,$ and on each December $31$ through $2026.$ The lessor, HVAC Leasing, calculates lease payments based on an annual interest rate of $8\%.$ Winn also paid a $$126,000$ advance payment at the beginning of the lease. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $$237,000.$ The useful life of the building and the structural modifications were estimated to be $30$ years with no residual value.

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 Winn Heat Transfer from the beginning of the lease through the end of $2026.$ Winn$$s fiscal year is the calendar year.

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