Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $90,000. Manufacturers Southern's fiscal year ends December 31. (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 $15,500 at the beginning of each period Economic life of asset 2 years Fair value of asset $117,772 Implicit interest rate 6% Required: 1. Show how International Machines determined the $15,500 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.

Show how International Machines determined the $15,500 quarterly lease payments. (Round your intermediate and final answers to the nearest whole dollar. Round your percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: PV of Lease n = i = Lease Payment Required 1 Required 2 cord the lease. Enter debits before credits. Date General Journal Debit Credit uary 01, 2021 2 3 Record cash received. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021 1 2 3 Record cash received. ote: Enter debits before credits. Date General Journal Debit Credit April 01, 2021 Record entry Clear entry View general journal