Don't provide answers in image format **Finance Lease Accounting: A Case Study of Larkspur Corporation**Larkspur Corporation recorded a right-of-use asset valued at $410,400 as a part of a finance lease on December 31, 2024. The incremental borrowing rate is set at 10%, and the implicit rate of the lessor was unknown at the lease’s commencement. The initial lease payment of $64,784 was made on December 31, 2024. The lease arrangement requires nine annual payments for equipment that has a useful life of nine years with no residual value.**Objective**:Prepare Larkspur's lease accounting entries for December 31, 2025. This involves the recording of lease payments and the amortization of the right-of-use asset.**Instructions**:1. List all debit entries before credit entries.2. Credit account titles are to be automatically indented when amounts are entered; no manual indentation needed.3. If no entry is necessary, select "No Entry" and enter 0 for the amounts.4. Round all numerical answers to 0 decimal places (e.g., 5,275).**Account Entries for December 31, 2025**:| Date | Account Titles and Explanation | Debit | Credit ||--------------------|---------------------------------------------------------------------|-------|--------|| December 31, 2025 | | | || | | | || | (To record lease payment) | | || December 31, 2025 | | | || | | | || | (To record amortization of the right-of-use asset) | | |This section provides the structured format for recording and reflecting lease payments and asset amortization in corporate financial statements.

A journal is a book where all of a business's initial transactions are entered. The very first part of the accounting cycle is journal entries. The double-accounting approach is what accounting journal entries all follow, and this is the most important item to understand.Preparation of journal entries:Excel formula:Preparation of journal entries: DateAccount Titles and ExplanationDebitCreditDecember 31 2025Interest Expense$34,562 Lease Liability (Balancing figure)$30,222 Cash$64,784 (To record lease payment)December 31 2025Amortization Expense$45,600 Right-of-use Asset$45,600 (To record amortization of the right-of-use asset)