AEK Company purchased a computerized machine on January 1, 2019, for $2,800,000 for the purpose of leasing it. The machine was expected to have an seven-year life from January 1, 2019, to have no salvage value, and to be depreciated on a straight- line basis. On January 1,2019, AEK leases the machine to U-Life Company at a total rental of $1,500,000, payable in four annual installments in the following acceleration pattern; 15% in the first two years, 25% in the third year and 45% in the last year. The lease payment begins on the lease signing contract date. In addition to the rent, U-Life is required to pay annual executory cost of $25,000 to cover unusual repairs and insurance. The lease does not qualify as capital lease for reporting purposes.

Required: Provide all necessary entries to record the lease transactions for 2019 and 2022 on the books of

1. AEK Company
2. U-Life Company

1. AEK Companys Book.

Date	Account Title	Debit	Credit
2019 Jan.1
Dec. 31
2022 Jan.1

2. U-Life Companys Book.

Date	Account Title	Debit	Credit
2019 Jan.1
2022 Jan.1