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 $112,080.

Related Information:

Lease term 2 years (8 quarterly periods)

Quarterly rental payments $15,000 at the beginning of each period

Economic life of asset 2 years

Fair value of asset $112,080

Implicit interest rate 8%

(Also lessee's incremental borrowing rate)

Required:

required a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease

through January 1, 2019. Edison's fiscal year ends December 31.