Mike Macinski Leasing Company leases a new machine that has a cost and fair value of $93,400 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2014. Mike Macinski Leasing Company expects to earn a 8% return on its investment. The annual rentals are payable on each December 31.

Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved.

	Rent receipt/payment	Interest revenue/expense	Reduction of Principal	Receivable/Liability
1/1/2014
12/31/2014
12/31/2015
12/31/2016