Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $190,000. The chronometers have a fair value of $247,000. Appropriate adjusting entries are made quarterly. (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 5 years (20 quarterly periods) Quarterly lease payments $13,819 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. Economic life of asset 6 years Estimated residual value of chronometers at end of lease term $10,666 Interest rate charged by the lessor 16% Required:

1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018.

2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018.

Required 1 Required 2 Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) General Journal Credit No 1 Date January 01, 2018 Right-of-use asset Lease payable Debit 126,454 126,454 X 2 11,638 X January 01, 2018 Lease payable Cash 11,638 X 3 March 31, 2018 Interest expense Lease payable Cash 3,443 % 8,195 X 11,638 X OO OOO 4 March 31, 2018 6,323 X Amortization expense Right-of-use asset 6,323 X Required 1 Required 2 Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) General Journal Credit No 1 Date January 01, 2018 Lease receivable Right-of-use asset Debit 126,454 x 126,454 X 2 11,638 x January 01, 2018 Cash Lease receivable 11,638 X March 31, 2018 11,638 Cash Interest expense Lease receivable 3,443 x 8,195 X