. Northwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2020. Hi-Tech manufactured the equipment at a cost of $110,000.

Other information:

Lease term	3 years
Annual payments	$50,000 on January 1 each year
Life of asset	3 years
Implicit interest rate	8%
Incremental rate	8%
PV, annuity due, 3 periods, 8%	2.7833
PV, ordinary annuity, 3 periods, 8%	2.5771

There is no expected residual value.

Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2020 and 2021. Assume a December 31 year-end. Round your answers to the nearest whole dollar amounts