Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from Wong Machines at a cost of $254,500, its fair value. (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 lease payments	$19,500 at Jan. 1, 2018, 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: Prepare a lease amortization schedule and appropriate entries for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.

through December 31, 2018. December 31 is the fiscal year end for each company. (Enter all amounts as positive values.)

Payment Date	Lease Payments	Effective Interest	Decrease in Balance	Lease Balance
				$140,990
01/01/2018
04/01/2018
07/01/2018
10/01/2018
01/01/2019
04/01/2019
07/01/2019
10/01/2019
Total	$0	$0	$0

• 1 Record the beginning of the lease for Grichuk Power.

• 2 Record the quarterly rental paid by Grichuk Power.

• 3 Record the quarterly rental and interest paid by Grichuk Power.

• 4 Record the amortization of Right-of-use equipment for Grichuk Power.