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 $117,131. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD of $1)(Use appropriate factor(s) from the tables provided.)

Related Information:Lease term2 years (8 quarterly periods)Quarterly rental payments$16,200 at the beginning of each periodEconomic life of asset2 yearsFair value of asset$117,131Implicit interest rate12%(Also lessee's incremental borrowing rate

Required:

Prepare lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends December 31.