Eastern Edison Company leased equipment from Low-Tech Leasing on January 1, 2021. Low-Tech recently purchased the equipment at a cost of $313,821.

Other information:
Lease term		4 years
Annual payments	$	90,000 on January 1 each year
Life of asset		4 years
Fair value of asset	$	313,821
Implicit interest rate		10%
Incremental rate		10%

There is no expected residual value. Required: Prepare appropriate journal entries for Low-Tech Leasing for 2021. 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.)