Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $340,000 and lists a cash selling price of $390,757. Appropriate adjusting entries are made quarterly. (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	5 years (20 quarterly periods)
Quarterly lease payments	$25,500 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter
Economic life of asset	5 years
Interest rate charged by the lessor	12%

Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.

Journal Entry Part 1 Explanation:

1: Record the beginning of the lease for Eye Deal

2: Record the lease payment made by Eye Deal on January 1, 2021

3: Record the lease payment made by Eye Deal on March 31, 2021

4: Record amortization of the right-of-use asset for Eye Deal

Required 1 Required 2 Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answer to the nearest whole dollar.) View transaction list View journal entry worksheet General Journal Debit Credit No 1 Date January 01, 2021 Right-of-use asset Lease payable 2 25,500 January 01, 2021 Lease payable Cash 25,500 3 March 31, 2021 Lease payable Interest expense Cash 4 19,538 March 31, 2021 Amortization expense Right-of-use asset 19,538