Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016. Edison purchased the equipment from International Machines at a cost of $252,967. (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	$24,000 at Jan. 1, 2016, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
Economic life of asset	3 years
Interest rate charged by the lessor	12%
Respond to the question with the presumption that the guidance provided by the proposed Accounting Standards Update is being applied.

Required:

Prepare appropriate entries for Manufacturers Southern from the beginning of the lease through March 31, 2016. Appropriate adjusting entries are made quarterly including amortization expense for March 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)