Transcribed Image Text
In: AccountingEastern Edison Company leased equipment from Hi-Tech Leasing onJanuary 1, 2018. Other information: Lease term...Eastern Edison Company leased equipment from Hi-Tech Leasing onJanuary 1, 2018. Other information: Lease term 4 years Annualpayments $89,000 on January 1 each year Life of asset 4 yearsImplicit interest rate 8% PV, annuity due, 4 periods, 8% 3.5771 PV,ordinary annuity, 4 periods, 8% 3.3121 Hi-Tech's cost of theequipment $318,362 There is no expected residual value. Required:Prepare appropriate journal entries for Hi-Tech Leasing for 2018and 2019. Assume a December 31 year-end. (If no entry is requiredfor a transaction/event, select "No journal entry required" in thefirst account field. Round your answers to the nearest whole dollaramounts.)