Newton Labs leased chronometers from Brookline Instruments on January $1,2024.$ Brookline Instruments manufactured the chronometers at a cost of $$180,000.$ The chronometers have a fair value of $$225,154.$ Appropriate adjusting entries are made quarterly.

Related Information:

Lease term $5$ years $(20$ quarterly periods$)$

Quarterly lease payments $ $13,092$ at January $1,2024,$ and at March $31,$ June $30,$ September $30,$ and December $31$ thereafter.

Economic life of asset $6$ years

Estimated residual value of chronometers at end of lease term $ $10,105$

Interest rate charged by the lessor $8\%$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January $1,2024,$ and on March $31,2024.$

Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January $1,2024,$ and on March $31,2024.$