On January 1, 2018, Robertson Construction Leased Several Items of Equipment

Essay

On January 1, 2018, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $40,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $360,000 and was expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semi-annually.
-Required:
Prepare the appropriate journal entries for the lessee from the beginning of the lease through the end of 2018. Round your answers to the nearest whole dollar amounts.