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Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $112,080. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $15,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $112,080 Implicit interest rate 8% (Also lessee's incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends December 31. No Date General Journal Debit Credit 1 112,080 January 01, 2021 Lease receivable Equipment 112,080 2 January 01, 2021 Cash 15,000 Lease receivable 15,000 3 April 01, 2021 Cash 1,942 X Lease receivable 13,058 X Interest expense 15,000 4 July 01, 2021 Cash 15,000 Lease receivable 13,320 13,058 X Interest revenue 5 October 01, 2021 1,412 13,858 X Lease receivable Interest expense 15,000 6 December 31, 202 Cash Lease receivable Interest revenue 5 October 01, 2021 1,412 X Lease receivable 13,858 X Interest expense 15,000 X 6 December 31, 202 Cash x Lease receivable Interest revenue 7 January 01, 2022 No journal entry required

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