atick Industries leased high-tech instruments from Framingham Leasing on January 1, 2024. Natick has the option to renew the lease at the end of two years for an additional three years. Natick is subject to a $60,000 penalty after two years if it fails to renew the lease. Framingham Leasing purchased the equipment from Waltham Machines at a cost of $255,164.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Related Information:Lease term2years (8 quarterly periods)Lease renewal option for an additional3years (12 quarterly periods)Quarterly lease payments$14,000at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafterEconomic life of asset5yearsInterest rate charged by the lessor4%

Required:

Prepare appropriate entries for Natick Industries from the beginning of the lease through March 31, 2024. Appropriate adjusting entries are made quarterly.

• Record the beginning of the lease for Natick Industries. Jan. 1, 2024
• Record the lease payment for Natick Industries. Jan. 1, 2024
• Record the lease payment for Natick Industries. March 31, 2024
• Record the amortization for Natick Industries. March 31, 2024