Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $112,080.

Related Information:
Lease term .........................................2 years (8 quarterly periods)
Quarterly rental payments ...............$15,000 at the beginning of each period
Economic life of asset ........................2 years
Fair value of asset .............................$112,080
Implicit interest rate .............................8%
(Also lessee’s incremental borrowing rate)

Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison’s fiscal year ends December 31.