Peters Company leased a machine from Johnson Corporation on January 1, 2024. The machine has a fair value of $30,000,000. The lease agreement calls for four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. The appropriate interest rate for this lease is 8%.

Other information: PV of an ordinary annuity at 8% for 4 periods: 3.31213 PV of an annuity due at 8% for 4 periods: 3.57710 Required: Determine the amount of each lease payment. Prepare the journal entry for Peters Company at the beginning of the lease. Prepare the journal entry for the first lease payment (ignore amortization). Prepare the journal entry for the second lease payment (ignore amortization).