Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2021

Subject:AccountingPrice:2.87 Bought7

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Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2021.

Other information:
Lease term		5 years
Annual payments		$79,000 on January 1 each year
Life of asset		5 years
Implicit interest rate		7%
PV, annuity due, 5 periods, 7%		4.3872
PV, ordinary annuity, 5 periods, 7%		4.1002
Hi-Tech's cost of the equipment		$346,589

There is no expected residual value.

Required:
Prepare appropriate journal entries for Hi-Tech Leasing for 2021 and 2022. 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 intermediate and final answers to the nearest whole dollar amounts.)

PLEASE SEE EACH JOURNAL ENTRY BELOW.

1. January 1, 2021 - Record the Lease

2. January 1, 2021 - Record the cash receipt for the annual payments.

3. December 31, 2021 - Record the entry for the interest revenue.

4. January 1, 2022 - Record the cash receipt for the annual payments.

5. December 31, 2022 - Record the entry for the interest revenue.