Elf Leasing purchased a machine for $450,000 and leased it to IGA, Inc. on January 1, 2018.

Lease description:
Quarterly rental payments	$29,366 at beginning of each period
Lease term	5 years (20 quarters)
No residual value; no BPO
Economic life of machine	5 years
Implicit interest rate and lessees incremental borrowing rate	12%
Fair value of asset	$450,000

Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2018. 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.)

Journal Entries:

1. Record the entry to lease machine from Elf on January 1, 2018.

2. Record cash paid for lease payment. (Jan. 1st 2018)

3. Record cash paid for the lease payment with interest. (April 1st 2018)

4. Record Elf leased receivable at January 1, 2018.

5. Record the cash receipt for the lease payments. (Jan. 1st 2018)

6. Record the cash receipt for the lease payments with interest. (April 1st 2018)