Takesi Corporation (lessee) recorded a lease, including right-of-use asset and a lease liability, at 2,280,000 on jan 1,2019. The interest rate is 23%. Takesi made a first lease payment on jan 1,2019. The lease requires 8 annual payments at the beginning of the calendar year with no residual value.

Instructions:

1. Compute the lessee annual payment.

2. Prepare Lease Amortization Schedule for the lease term (round to the whole number).

3. Prepare Pick Corporations January 1, 2019 entry at the beginning of the lease, including the first lease payment.

4. Prepare December 31, 2019 adjusting entries.

5. Prepare January 1, 2020 entry to record the second lease payment.