Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018.

Other information:
Lease term	4 years
Annual payments	$86,000 on January 1 each year
Life of asset	4 years
Implicit interest rate	9%
PV, annuity due, 4 periods, 9%	3.5313
PV, ordinary annuity, 4 periods, 9%	3.2397
Hi-Tech's cost of the equipment	$303,692

There is no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2018 and 2019. Assume a December 31 year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)