Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $85,000.

Other information:
Lease term	4 years
Annual payments	$30,000 on January 1 each year
Life of asset	4 years
Fair value of asset	$105,939
Implicit interest rate	9%
Incremental rate	9%

There is no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2018. Assume a December 31 year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)