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 $114,321. (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.)

Related Information:
Lease term	2 years (8 quarterly periods)
Quarterly rental payments	$15,300 at the beginning of each period
Economic life of asset	2 years
Fair value of asset	$114,321
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, 2022. Edisons fiscal year ends December 31.

positive values.)

Payment Date	Lease Payments	Effective Interest	Decrease in Balance	Lease Balance
01/01/2021				$114,321
01/01/2021	$15,300	$0	$15,300	99,021
04/01/2021	15,300	2,286	13,014	86,007
07/01/2021	15,300	1,720	13,580	72,427
10/01/2021	15,300	1,449	13,851	58,576
01/01/2022	15,300	1,172	14,128	44,448
04/01/2022	15,300	889	14,411	30,037
07/01/2022	15,300	601	14,699	15,338
10/01/2022	15,300	(38)		15,338
Total	$122,400	$0	$0

2. Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edisons fiscal year ends December 31.