Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1 2016. International Machines manufactured the equipment at a cost of $97,000. (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 Quarterly rental payments Economic life of asset Fair value of asset Implicit interest ratee 2 years (8 quarterly periods) $16,200 at the beginning of each period 2 years $121,046 5% essee's incremental borrowing rate) Required 2. Prepare appropriate entries for International Machines to record the lease at its inception, January 1, 2016, and the second rental payment on April 1, 2016. (f no entry is required for a particular transaction, select "No journal entry required" in the first account field.) Answer is not complete Date General Journal Debit Credit 121.0460 January 01, 2016 |Lease receivable Sales revenue 121,046 January 01, 2016 Cash 16,200 Lease receivable 16,200 April 01, 2016 Cash 16,200 Interest revenue 2,421 Lease receivable 13,779