Maris Co. purchased a machine for cash on January 1, 2015, for $1,500,000 for the express purpose of leasing it. The machine is expected to have a five-year life, no salvage value, and be depreciated on a straight-line monthly basis. On January 1, 2015, under a cancelable lease, Maris leased the machine to Dunbar Company for $450,000 a year for a four-year period ending December 31, 2018. Maris incurred total maintenance and other related costs under the provisions of the lease of $15,000 relating to the year ended December 31, 2015. Harley paid $450,000 to Maris on January 1, 2015.

Instructions [Assume the operating method is appropriate for parts (a) and (b).]

(a) Prepare all of Maris journal entries for January 1, 2015 and December 31, 2015.

(b) Prepare all of Dunbars journal entries for January 1, 2015 and December 31, 2015.