On January 1, 2008, Dalton Corporation signed a five-year noncancelable lease for equipment.

The terms of the lease called for Dalton to make annual payments of $50,000 at the beginning of

each year for five years with title to pass to Dalton at the end of this period. The equipment has

an estimated useful life of 7 years and no salvage value. Dalton uses the straight-line method of

depreciation for all of its fixed assets. Dalton accordingly accounts for this lease transaction as a

capital lease. The minimum lease payments were determined to have a present value of

$208,493 at an effective interest rate of 10%.

Prepare a lease amortization for 2018&2019

Record journal entries for 1/1/18 12/31/18 12/31/2019