Larkspur Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $104,

[answerhappygod]

Larkspur Corporation manufactures drones. On December 31,
2019, it leased to Althaus Company a drone that had cost
$104,800 to manufacture. The lease agreement covers
the 5-year useful life of the drone and
requires 5 equal annual rentals of $37,400 payable
each December 31, beginning December 31, 2019. An interest rate
of 11% is implicit in the lease agreement. Collectibility of
the rentals is probable.

Prepare Larkspur’s December 31, 2019, journal entries.