Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $127,024. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from 2018)

Related Information:
Lease term	2 years (8 quarterly periods)
Quarterly rental payments	$17,000 at the beginning of each period
Economic life of asset	2 years
Fair value of asset	$127,024
Implicit interest rate	8%
(Also lessees incremental borrowing rate)

Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2019. Edisons fiscal year ends December 31.

Jan 1 - Record the lease.

Jan 1 - Record cash received.

April 1 - Record cash received.

July 1 - Record cash received.

October 1 - Record cash received.

December 31 - Record interest receivable.

Jan 1 - 2019 Record cash received.

Lease Effective Decrease in Payment date Lease Balance Payments Interest Balance 01/01/2018 01/01/2018 04/01/2018 07/01/2018 10/01/2018 01/01/2019 04/01/2019 07/01/2019 10/01/2019 0$ 0 $ $ 0 Total