Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from Wong Machines at a cost of $112,080.

Related Information:

Lease term ............................................... 2 years (8 quarterly periods)

Quarterly lease payments ...... $15,000 at Jan. 1, 2018, and at Mar. 31, June 30,

......................................................... Sept. 30, and Dec. 31 thereafter

Economic life of asset ............................................................ 5 years

Interest rate charged by the lessor ................................................. 8%

Required:

Prepare appropriate entries for Grichuk Power from the beginning of the lease through December 31, 2018. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.