Python Company leased equipment from Hope Leasing on January $1,2024.$ Hope recently purchased the equipment at a cost of $$222,664.$

Other information:

Lease term $3$ years

Annual payments $$80,000$ on January $1$ each year

Life of asset $3$ years

Fair value of asset $$222,664$

Implicit interest rate $8\%$

Incremental rate $8\%$

There is no expected residual value.

Required:

Prepare appropriate journal entries for Python for $2024.$ Assume straight$-$line depreciation and a December $31$ year$-$end.

$1.($January $01,2024)$ Record the entry to lease the equipment from Hope Leasing on January $01,2024.$

$2.($January $01,2024)$ Record the cash paid for annual payment.

$3.($December $31,2024)$ Record the adjusting entry.

$4.($December $31,2024)$ Record the entry for amortization expense.