Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $190,000. The chronometers have a fair value of $200,185. 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.)

Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2021, and on March 31, 2021. 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2021, and on March 31, 2021.

Related Information: Lease term Quarterly lease payments Economic life of asset Estimated residual value of chronometers at end of lease term Interest rate charged by the lessor 5 years (20 quarterly periods) $ 13,819 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 6 years $10,666 16% Required 1 Required 2 Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2021, and on March 31, (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermedia final answers to nearest whole dollar.) View transaction list View journal entry worksheet Debit Credit No 1 Date General Journal January 01, 2021 Lease receivable Cost of goods sold Sales revenue Equipment 2 January 01, 2021 Cash Lease receivable 3 March 31, 2021 Cash Interest revenue Lease receivable 1 4 March 31, 2021 Amortization expense Right-of-use asset Required 1 Required 2 > Required 1 Required 2 Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2021, and on 31, 2021. (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.) View transaction list View journal entry worksheet General Journal Debit Credit No 1 Date January 01, 2021 Lease receivable Right-of-use asset 2 January 01, 2021 Cash Lease receivable March 31, 2021 Cash Lease receivable Interest revenue TABLE 2 Present Value of $1 $1 PV (1+7)" mi 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 0.0% 10.0% 11.0% 12.0% 20.0% 1 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 2 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89845 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.69444 3 0.97059 0.95632 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.85161 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.57870 4 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856 0.82270 0.80722 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.48225 5 0.95147 0.92826 0.90573 0.88385 0.86261 0.84197 0.82193 0.80245 0.78353 0.76513 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.40188 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 0.63017 0.59627 0.56447 7 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.66506 0.62275 0.58349 0.54703 0.51316 8 0.92348 0.88771 0.85349 0.82075 0.78941 0.75941 0.73069 0.70319 0.67684 0.65160 0.62741 0.58201 0.54027 0.50187 0.46651 9 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 0.50025 0.46043 0.42410 10 0.90529 0.86167 0.82035 0.78120 0.74409 0.70892 0.67556 0.64393 0.61391 0.58543 0.55839 0.50835 0.46319 0.42241 0.38554 0.53464 0.50663 0.33490 0.48166 0.45235 0.27908 0.43393 0.40388 0.23257 0.39092 0.36061 0.19381 0.35218 0.32197 0.16151 11 0.89632 0.84893 0.80426 0.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.13459 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 0.49697 0.44401 0.39711 0.35553 031863 0.28584 0.25668 0.11216 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032 0.49856 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.09346 14 0.86996 0.81185 0.75788 0.70773 0.66112 0.61778 0.57748 0.53997 0.50507 0.47257 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.07789 15 0.86135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.31524 0.27454 0.23939 0.209000.18270 0.06491 16 0.85282 0.78803 0.72845 17 0.84438 0.77639 0.71416 18 0.83602 0.76491 0.70016 19 0.82774 0.75361 0.68643 20 0.81954 0.74247 0.67297 0.67362 0.62317 0.57671 0.53391 0.49447 0.65720 0.60502 0.55720 0.51337 0.47318 0.64117 0.58739 0.53836 0.49363 0.45280 0.62553 0.57029 0.52016 0.47464 0.43330 0.61027 0.55368 0.50257 0.45639 0.41464 0.45811 0.42458 0.39365 0.33873 0.43630 0.40245 0.37136 0.31657 0.41552 0.38147 0.35034 0.29586 0.39573 0.36158 0.33051 0.27651 0.37689 0.34273 0.31180 0.25842 0.29189 0.25187 0.21763 0.18829 0.27027 0.23107 0.19784 0.16963 0.25025 0.21199 0.17986 0.15282 0.23171 0.19449 0.16351 0.13768 0.21455 0.17843 0.14864 0.12403 0.16312 0.05409 0.14564 0.04507 0.13004 0.03756 0.11611 0.03130 0.10367 0.02608 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 0.19866 0.16370 0.13513 0.11174 0.09256 0.02174 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 0.15770 0.12640 0.10153 0.08170 0.06588 0.01258 25 0.77977 0.68921 0.60953 0.53939 0.47761 0.42315 0.37512 0.33273 0.29530 0.26223 0.23300 0.18425 0.14602 0.11597 0.09230 0.07361 0.05882 0.01048 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 0.33348 0.29157 0.25509 0.22332 0.19563 0.15040 0.11591 0.08955 0.06934 0.05382 0.04187 0.00607 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.00506 30 0.74192 0.63976 0.55207 0.47674 0.41199 0.35628 0.30832 0.26700 0.23138 0.20064 31 0.73458 0.63031 0.54125 0.46511 0.39999 0.34423 0.29646 0.25550 0.22036 0.19018 40 0.67165 0.55126 0.45289 0.37243 0.30656 0.25257 0.20829 0.17193 0.14205 0.11746 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.00421 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.00351 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00068 TABLE 4 Present Value of an Ordinary Annuity of $1 1- (1+1 PVA=- w/ 1 2 3 4 5 1.0% 1.5% 0.99010 0.98522 1.97040 1.95588 2.940992.91220 3.90197 3.85438 4.85343 4.78264 2.0% 0.98039 1.94156 2.88388 3.80773 4.71346 2.5% 0.97561 1.92742 2.85602 3.76197 4.64583 3.0% 0.97087 1.91347 2.82861 3.71710 4.57971 3.5% 0.96618 1.89969 2.80164 3.67308 4.51505 4.0% 4.5% 0.96154 0.95694 1.886091.87267 2.77509 2.74896 3.62990 3.58753 4.45182 4.38998 5.0% 0.95238 1.85941 2.72325 3.54595 4.32948 5.5% 0.94787 1.84632 2.69793 3.50515 4.27028 6.0% 0.94340 1.83339 2.67301 3.46511 4.21236 7.0% 0.93458 1.80802 2.62432 3.38721 4.10020 8.0% 0.92593 1.78326 2.57710 3.31213 3.99271 0.0% 0.0% 11.0% 12.0% 20.0% 0.91743 0.90909 0.90090 0.89286 0.83333 1.75911 1.73554 1.71252 1.69005 1.52778 2.53129 2.48685 2.44371 2.40183 2.10648 3.23972 3.16987 3.10245 3.03735 2.58873 3.88965 3.79079 3.69590 3.60478 2.99061 6 7 8 9 10 5.79548 5.69719 6.72819 6.59821 7.651687.48593 8.56602 8.36052 9.47130 9.22218 5.60143 6.47199 7.32548 8.16224 8.98259 5.508135.41719 6.349396.23028 7.170147.01969 7.97087 7.78611 8.75206 8.53020 5.32855 5.24214 6.11454 6.00205 6.87396 6.73274 7.607697.43533 8.31661 8.11090 5.15787 5.89270 6.59589 7.26879 7.91272 5.07569 4.99553 4.91732 5.78637 5.68297 5.58238 6.46321 6.33457 6.20979 7.10782 6.952206.80169 7.721737.537637.36009 4.76654 5.38929 5.97130 6.51523 7.02358 4.62288 5.20637 5.74664 6.24689 6.71008 4.48592 4.35526 4.23054 4.11141 3.32551 5.03295 4.86842 4.71220 4.56376 3.60459 5.53482 5.33493 5.14612 4.96764 3.83716 5.99525 5.75902 5.53705 5.32825 4.03097 6.41766 6.14457 5.88923 5.65022 4.19247 11 12 13 14 15 10.36763 10.07112 9.78685 11.25508 10.90751 10.57534 12.13374 11.73153 11.34837 13.00370 12.54338 12.10625 13.86505 13.34323 12.84926 9.51421 9.252629.00155 10.25776 9.95400 9.66333 10.98319 10.63496 10.30274 11.69091 11.29607 10.92052 12.38138 11.93794 11.51741 8.76048 9.38507 9.98565 10.56312 11.11839 8.52892 9.11858 9.68285 10.22283 10.73955 8.30641 8.86325 9.39357 9.89864 10.37966 8.09254 7.88687 7.49867 7.13896 8.61852 8.38384 7.942697.53608 9.11708 8.85268 8.35765 7.90378 9.589659.294988.74547 8.24424 10.037589.71225 9.10791 8.55948 6.80519 6.49506 6.20652 5.93770 4.32706 7.16073 6.81369 6.49236 6.19437 4.43922 7.48690 7.10336 6.74987 6.42355 4.53268 7.78615 7.36669 6.98187 6.62817 4.61057 8.060697.60608 7.19087 6.81086 4.67547 16 17 18 19 20 14.71787 14.13126 13.57771 13.05500 12.56110 12.09412 15.56225 14.90765 14.29187 13.71220 13.16612 12.65132 16.39827 15.67256 14.99203 14.35336 13.75351 13.18968 17.22601 16.42617 15.67846 14.97889 14.32380 13.70984 18.04555 17.16864 16.35143 15.58916 14.87747 14.21240 11.65230 11.23402 10.83777 12.16567 11.70719 11.27407 12.65930 12.15999 11.68959 13.13394 12.59329 12.08532 13.59033 13.00794 12.46221 10.46216 10.10590 10.86461 10.47726 11.24607 10.82760 11.60765 11.15812 11.95038 11.46992 9.44665 8.85137 9.76322 9.12164 10.059099.37189 10.33560 9.60360 10.59401 9.81815 8.31256 7.82371 7.37916 6.97399 4.72956 8.54363 8.02155 7.54879 7.11963 4.77463 8.75563 8.20141 7.701627.24967 4.81219 8.95011 8.36492 7.839297.36578 4.84350 9.12855 8.51356 7.96333 7.46944 4.86958 21 18.85698 17.90014 17.01121 16.18455 15.41502 14.69797 14.02916 25 22.02316 20.71961 19.52346 18.42438 17.41315 16.48151 15.62208 30 25.80771 24.01584 22.39646 20.93029 19.60044 18.39205 17.29203 40 32.83469 29.91585 27.35548 25.10278 23.11477 2135507 19.79277 13.40472 12.82115 12.27524 14.82821 14.09394 13.41393 16.28889 15.37245 14.53375 18.40158 17.15909 16.04612 11.76408 12.78336 13.76483 15.04630 10.83553 11.65358 12.40904 13.33171 10.01680 9.29224 8.64869 8.07507 7.56200 4.89132 10.67478 9.82258 9.07704 8.42174 7.84314 4.94759 11.25778 10.27365 9.42691 8.69379 8.05518 4.97894 11.92461 10.75736 9.77905 8.95105 8.24378 4.99660 TABLE 6 Present Value of an Annuity Due of $1 PVAD = 1 +i) ni 1 2 1.0% 1.00000 1.99010 1.5% 1.00000 1.98522 2.0% 1.00000 1.98039 2.5% 1.00000 1.97561 3.0% 3.5% 1.00000 1.00000 1.970871.96618 4.0% 1.00000 1.96154 4.5% 1.00000 1.95694 5.0% 1.00000 1.95238 5.5% 1.00000 1.94787 6.0% 1.00000 1.94340 7.0% 1.00000 1.93458 8.0% 1.00000 1.92593 0.0% 1.00000 1.91743 0.0% 1.00000 1.90909 11.0% 1.00000 1.90090 12.0% 1.00000 1.89286 20.0% 1.00000 1.83333 3 2.97040 2.95588 294156 2.92742 2.913472.899692.886092.87267 2.85941 2.84632 2.83339 2.80802 2.78326 2.75911 2.73554 2.71252 2.69005 2.52778 4 5 3.94099 4.90197 3.91220 4.85438 3.88388 4.80773 3.85602 4.76197 3.82861 4.71710 3.80164 4.67308 3.77509 4.62990 3.74896 4.58753 3.72325 4.54595 3.69793 4.50515 3.67301 4.46511 3.62432 4.38721 3.57710 3.53129 4.312134.23972 3.48685 3.44371 3.40183 4.16987 4.10245 4.03735 3.10648 3.58873 6 5.85343 5.78264 5.71346 5.64583 5.579715.51505 5.45182 5.38998 5.32948 5.27028 5.21236 5.10020 4.99271 4.88965 4.79079 4.69590 4.60478 3.99061 7 8 9 10 6.795486.697196.60143 6.50813 6.417196.32855 6.24214 7.728197.59821 7.471997.349397.23028 7.11454 7.00205 8.65168 8.48593 8.32548 8.17014 8.01969 7.87396 7.73274 9.56602 9.36052 9.16224 8.97087 8.78611 8.607698.43533 6.157876.07569 6.89270 6.78637 7.59589 7.46321 8.26879 8.10782 5.99553 6.68297 733457 7.95220 5.91732 5.76654 5.62288 5.48592 6.58238 6.389296.20637 6.03295 7.209796.97130 6.74664 6.53482 7.801697.51523 7.246896.99525 5.35526 5.23054 5.11141 4.32551 5.86842 5.71220 5.56376 4.60459 6.33493 6.14612 5.96764 4.83716 6.75902 6.53705 6.32825 5.03097 11 12 13 14 15 10.47130 10.22218 11.36763 11.07112 12.25508 11.90751 13.13374 12.73153 14.00370 13.54338 9.98259 10.78685 11.57534 12.34837 13.10625 9.75206 10.51421 11.25776 11.98318 12.69091 9.53020 10.25262 10.95400 11.63496 12.29607 9.31661 10.00155 10.66333 11.30274 11.92052 9.11090 9.76048 10.38507 10.98565 11.56312 8.91272 9.52892 10.11858 10.68285 11.22283 8.72173 9.30641 9.86325 10.39357 10.89864 8.53763 9.09254 9.61852 10.11708 10.58965 8.36009 8.88687 9.38384 9.85268 10.29498 8.02358 8.49867 8.94269 9.35765 9.74547 7.71008 7.41766 8.13896 7.80519 8.536088.16073 8.90378 8.48690 9.244248.78615 7.14457 6.88923 6.65022 5.19247 7.49506 7.20652 6.93770 5.32706 7.813697.49236 7.19437 5.43922 8.10336 7.74987 7.42355 5.53268 8.36669 7.98187 7.62817 5.61057 16 14.86505 17 15.71787 18 16.56225 1917.39827 20 18.22601 14.34323 13.84926 13.38138 15.13126 14.57771 14.05500 15.90765 15.29187 14.71220 16.67256 15.99203 15.35336 17.42617 16.67846 15.97889 12.93794 13.56110 14.16612 14.75351 1532380 12.51741 12.11839 13.09412 12.65230 13.65132 13.16567 14.18968 13.65930 14.70984 14.13394 11.73955 12.23402 12.70719 13.15999 13.59329 11.37966 11.03758 10.71225 10.10791 9.55948 9.060698.60608 8.19087 7.81086 5.67547 11.83777 11.46216 11.10590 10.44665 9.851379.31256 8.82371 8.37916 7.97399 5.72956 12.27407 11.86461 11.47726 10.76322 10.121649.54363 9.02155 8.54879 8.11963 5.77463 12.68959 12.24607 11.82760 11.05909 10.371899.75563 9.20141 8.70162 8.24967 5.81219 13.08532 12.60765 12.15812 11.33560 10.60360 9.95011 9.36492 8.83929 8.36578 5.84350 21 19.04555 25 22.24339 30 26.06579 40 33.16303 18.16864 17.35143 16.58916 15.87747 15.21240 14.59033 21.03041 19.91393 18.88499 17.93554 17.05837 16.24696 24.37608 22.84438 21.45355 20.18845 19.03577 17.98371 30.36458 27.90259 25.73034 23.80822 22.10250 20.58448 14.00794 15.49548 17.02189 19.22966 13.46221 14.79864 16.14107 18.01704 12.95038 14.15170 15.33310 16.92866 12.46992 11.59401 10.81815 13.55036 12.46933 11.52876 14.59072 13.27767 12.15841 15.94907 14.26493 12.87858 10.12855 10.70661 11.19828 11.72552 9.51356 9.98474 10.36961 10.75696 8.96333 8.46944 5.86958 9.34814 8.78432 5.93710 9.65011 9.02181 5.97472 9.93567 9.23303 5.99592