The Antonescu Sporting Goods leased equipment from Chapman Industries on January 1, 2013. Chapman Industries had manufactured the equipment at a cost of $800,000. Its cash selling price and fair value is $1,000,000.

Required:
1. Prepare the appropriate entries for Antonescu Sporting Goods (Lessee) on January 1, 2013 and December 31, 2013. Round to nearest dollar.
2. Prepare the appropriate entries for Chapman Industries (Lessor) on January 1, 2013 and December 31, 2013. Round to nearestdollar.

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Other Information: Lease term Annual payments Life of asset Rate the lessor charges 4 years $279,556 beginning Jan. 1, 2013, and at Dec. 31, 2013, 2014, and 2015 4 years 8%