22) Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $320,000. The chronometers have a fair value of $337,166. Appropriate adjusting entries are made quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Related Information:
Lease term		5 years (20 quarterly periods)
Quarterly lease payments	$	23,275 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
Economic life of asset		6 years
Estimated residual value of chronometers at end of lease term	$	17,964
Interest rate charged by the lessor		16%

Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2021, and on March 31, 2021.

• 1 Record the beginning of the lease for Newton Labs.

• 2 Record the lease payment made by Newton Labs.

• 3 Record the quarterly lease payment made by Newton Labs.

• 4 Record amortization of the right-of-use asset for Newton Labs.

2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2021, and on March 31, 2021

• 1 Record the beginning of the lease for Brookline Instruments.

• 2 Record the lease payment received by Brookline Instruments.

• 3 Record the lease payment received by Brookline Instruments.