YK Incorporated leased road building equipment from Bajan Leasing on January 1, 2021. Bajan purchased the equipment from International Machines at a cost of $148,930.

Related Information:
Lease term	2 years (4 semi-annual periods)
Quarterly rental payments	$40,000 at the beginning of each period
Economic life of asset	2 years
Fair value of asset	$148,930
Implicit interest rate	10%
(Also lessees incremental borrowing rate)

Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.