Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $123,288. (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 rental payments $16,500 at the beginning of each period Economic life of asset 2 years Fair value of asset $123,288 Implicit interest rate 8% (Also lessees incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis.

Amort Schedule: Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. (Enter all amounts as positive values.)

Payment Date	Lease Payments	Effective Interest	Decrease in Balance	Lease Balance
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

Record the beginning of the lease for Manufacturers Southern.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2018

Record lease payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2018

Record lease payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
April 01, 2018

Record lease payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 01, 2018

Record lease payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
October 01, 2018