Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $131,379. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) or Use Intermediate Accounting table if not provided.

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	$131,379
Implicit interest rate	4%
(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, 2022. Edisons fiscal year ends December 31.

Amortization schedule

Payment Date	Lease Payments	Effective Interest	Decrease in Balance	Lease Balance
1/1/2021
1/1/2021
4/1/2021
7/1/2021
10/1/2022
1/1/2022
4/1/2022
7/1/2022
10/1/2022
Total

General Journal

1. Record the lease. (January 1,2021)

2. Record cash received. (January 1,2021)

3. Record cash received. (April 1, 2021)

4.Record cash received. (July 1, 2021)

5. Record cash received. (October 1, 2021)

6. Record interest receivable. (December 31, 2021)

7. Record cash received. (January 1, 2022)