Shelf Leasing purchased a machine and leased it to ITA, Inc. on January 1, 2021. $32,629 at the beginning of each quarter. 5 years (20 quarters) Lease description: Quarterly rental payments Lease term No residual value No Bargain Purchase Option Economic life of machine Implicit annual interest rate and lessee's annual incremental borrowing rate Fair value of asset Cost of the Asset to Shelf 5 years 12% $500,000 $300,000 The lease is noncancelable, collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred. Required: Prepare appropriate entries for both ITA and Shelf Leasing from the inception of the lease through the second rental payment on April 1, 2021. Amortization is recorded at the end of each fiscal year (December 31)