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Southwestern Edison Company leased equipment from Hi - Tech Leasing on January 1 , 2 0 2 4 . Hi - Tech manufactured the equipment

Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1,2024. Hi-Tech manufactured the equipment at a cost of $86,000.
Other information:
Lease term 4 years
Annual payments $32,000 on January 1 each year
Life of asset 4 years
Fair value of asset $114,467
Implicit interest rate 8%
Incremental rate 8%
There is no expected residual value.
Required:
Prepare appropriate journal entries for Hi-Tech Leasing for 2024. Assume a December 31 year-end.

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