Lansing South leased hardware from Darter Computing on January 1. 2018. Darter Computing manufactured the hardware at a cost of $400.000 and lists a cash selling price of $500.354 (this is also PV of the lease payments). Appropriate adjusting entries are made quarterly.

Required:

Round your answers to the nearest whole dollar amounts,

1. Prepare appropriate jounal entries for Lansing South (lessee) to record the lease at its beginning, January 1, 2018, and on March 31, 2018.

January 1, 2018,

Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor 5 years (20 quarterly periods) $30,000 at Jan 1, 2018 and at Mar 31, June 30, Sept 30 and Dec 31 thereafter 5 years 8%