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 $250,797. (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 3 years (12 quarterly periods) Quarterly lease payments $17,000 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the lease. 2.Record the cash payment. 3.Record the cash payment. 4.Record amortization expense.