On January 1, 2021, The Danny Ainge Co. leased printing equipment from Laker LeaseCorp.

Lease term = 3 years

Useful life = 4 years

Semiannual lease payments of $164,000 at the beginning of each period

Interest rate = 14%

Unguaranteed residual value = $50,000

Maintenance Fees = $4,000/twice each year (included in the payments)

Lessors initial indirect costs = $5,000

Cost to produce the printing machine = $550,000

After the fact, you determine that your actual Residual Value is $20,000

Required (Please put Dr in front of your debits and Cr in front of your credits):

1. Prepare Journal Entries for Danny Ainge Co. and Laker LeaseCorp on December 31, 2021