1. On January 1, 2021, The BIRD Co. leased printing equipment from Piston LeaseCorp.

• Lease term = 2 years
• Useful life = 3 years
• Semiannual lease payments of $133,000 at the beginning of each period
• Interest rate = 33%
• Unguaranteed residual value = $12,000
• Maintenance Fees = $3,000/twice each year (included in the payments)
• Lessors initial indirect costs = $3,300
• Cost to produce the printing machine = $330,000
• After the fact, you determine that your actual Residual Value is $6,000

Required: Prepare Journal Entries for BIRD Co. and Piston LeaseCorp on December 31, 2021