1.

• Record the beginning of the lease for Eye Deal.
• Record the quarterly rental paid by Eye Deal.
• Record the quarterly rental and interest paid by Eye Deal.
• Record the Amortization of Right-of-use equipment for Eye Deal

2.

• Record the beginning of the lease for Insight Machines.
• Record the lease revenue received by Insight Machines.
• Record the lease revenue and interest received by Insight Machines.

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured the equipment at a cost of $260,000 and lists a cash selling price of $298,814. Appropriate adjusting entries are made quarterly. (FV of $1. PV of $1. FVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: 5 years (20 quarterly periods) $19,500 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. Lease term Quarterly lease payments Economic life of asset 5 years Interest rate charged by the lessor 12% Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018. 2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018