Elf Leasing purchased a machine for $440,000 and leased it to IGA, Inc. on January 1, 2021. Lease description: Quarterly rental payments Lease term No residual value; no BPO Economic life of machine Implicit interest rate and lessee's incremental borrowing rate Fair value of asset $25,224 at beginning of each period 6 years (24 quarters) 6 years 12% $440,000 Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Amortization is recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record the payment to be made for acquisition of right to control the use of the equipment with a fair value of $440,000 in the books of IGA (Lessee). Note: Enter debits before credits. Date January 01, 2021 General Journal Debit Credit Record entry Clear entry View general journal