Mathey Corporation (lessee) signed a 4-year lease with Zimmerman Co. for groundskeeping equipment. The lease term begins on January 1, 2019 and calls for 4 equal payments of $85,000 to be made at the beginning of each year.

The fair value of the equipment was $320,000 at the inception of the lease. The machine is expected to have a 6-year useful life with no salvage value. Ownership of the equipment will transfer to Mathey at the end of the lease term.

The following amortization schedule has been prepared to reflect the lease liability:

	Payment	Interest	Lease Liability Reduction	Lease Liability Remaining
				$300,160
1/1/2019	$ 85,000	$ -	$ 85,000	215,160
1/1/2020	85,000	19,364	65,636	149,524
1/1/2021	85,000	13,457	71,543	77,982
1/1/2022	85,000	7,018	77,982	0
	$ 340,000	$ 39,840	$ 300,160

Prepare the journal entries for Mathey at January 1, 2019, December 31, 2019, and January 1, 2020