Matlock Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Bonita Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement:

1.		Bonita Company has the option to purchase the equipment for $14,600 upon the termination of the lease.
2.		The equipment has a cost and fair value of $158,000 to Matlock Leasing Company. The useful economic life is 2 years, with a salvage value of $14,600.
3.		Bonita Company is required to pay $4,900 each year to the lessor for executory costs.
4.		Matlock Leasing Company desires to earn a return of 10% on its investment.
5.		The collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor.

Click here to view factor tables (a) Prepare the journal entries on the books of Matlock Leasing to reflect the payments received under the lease and to recognize income for the years 2017 and 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 0.527552, and the final answers to 0 decimal places e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date 1/1/1712/31/1712/31/18	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 1/1/1712/31/1712/31/18	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 1/1/1712/31/1712/31/18	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount