need only REQ 2.

Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $140,000. The chronometers have a fair value of $182,000. 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 oppropriate fector(s) from the tables provided.) Related Information: Lease term Quarterly lease payments Economic life of asset Estimated residual value of chronometers at end of lease term Interest rate charged by the lessor 5 years (20 quarterly periods) $10,184 at Ja. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter 6 years $7,861 12% Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018