Eastern Edison Company leased equipment from Low-Tech Leasing on January 1, 2018. Low-Tech recently purchased the equipment at a cost of $247,570.

Other information:
Lease term	4 years
Annual payments	$71,000 on January 1 each year
Life of asset	4 years
Fair value of asset	$247,570
Implicit interest rate	10%
Incremental rate	10%

There is no expected residual value. Required: Prepare appropriate journal entries for Low-Tech Leasing for 2018. 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.)