Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2013. Costs of negotiating and consummating the completed lease transaction incurred by Manufacturers Southern were $2,000. Edison purchased the equipment from International Machines at a cost of $250,177.

Required:
Prepare appropriate entries for Manufacturers Southern from the commencement of the lease through March 31, 2013. Appropriate adjusting entries are madequarterly.

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Related Information: Lease term Quarterly lease payments 2 years (8 quarterly periods) $15,000 at Jan. 1, 2013, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 8% Economic life of asset Interest rate charged by the lessor