Asian Transit Marine Corporation (Lessee) leases a forklift from NDP Leasing Corp. (Lessor). The lease, signed on January 1, 2019, specifies that NDP grants right-of-use of the lift to Asian Transit. The lease terms are as follows:

1. Lease is non-cancelable, term of four years, equal rental payments of P9,538.39 at the beginning of each year (annuity-due)

2. Forklift has a fair value of P40,000, economic life of six years, and residual value of P8,000 (unguaranteed).

3. Cost of forklift on NDP's books is P30,000.

4. No renewal options. Forklift reverts to NDP. Implicit rate of lessor is 8 percent and is known by Asian Transit.

Required:

Journal Entries for both the Lessor and the Lessee from lease commencement until last lease payment.