Eye Deal Optometry leased vision$-$testing equipment from Insight Machines on January $1,2021.$ Insight Machines manufactured the equipment at a cost of $$250,000$ and lists a cash selling price of $$312,721.$ Appropriate adjusting entries are made quarterly. $($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

Quarterly lease payments

Economic life of asset

Interest rate charged by the lessor

$5$ years $(20$ quarterly periods$)$

$$18,750$ at Jan. $1,2021,$ and at Mar. $31,$ June $30,$ Sept. $30,$ and Dec. $31$ thereafter $5$ years

$8\%$

Required:

Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January $1,2021,$ and on March $31,2021.$

Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January $1,2021,$ and on March $31,2021.$

Complete this question by entering your answers in the tabs below.

Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January $1,2021,$ and on March $31,2021.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate calculations and final answer to the nearest whole dollar.$)$

Journal entry worksheet

$1$

$2$

$3$

$4$

Record the beginning of the lease for Eye Deal.

Note: Enter debits before credits.

Required:

Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January $1,2021,$ and on March $31,2021.$

Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January $1,2021,$ and on March $31,2021.$

Complete this question by entering your answers in the tabs below.

Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January $1,2021,$ and on March $31,2021.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate calculations and final answer to the nearest whole dollar.$)$

Journal entry worksheet

$1$

$2$

$3$

Record the beginning of the lease for Insight Machines.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[\backslash$table$[[$January $01,],[2021]],,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$