Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured the equipment at a cost of $91,000. 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	$15,300 at the beginning of each period
Economic life of asset	2 years
Fair value of asset	$112,446
Implicit interest rate	10%

Required: 1. Show how International Machines determined the $15,300 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 2018.

Journal Entries:

Jan 1, 2018: Record the lease.

Jan 1, 2018: Record cash received.

April 1, 2018: Record cash received.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how International Machines determined the $15,300 quarterly lease payments. (Round your intermediate and final answers to nearest whole dollar.) PV factors based on Table or Calculator function: PV of Lease n= Lease Payment