On January 1,2016,Salvatore Company Leased Several Machines from Nola Corporation

Essay

On January 1,2016,Salvatore Company leased several machines from Nola Corporation under a three-year operating lease agreement.The lease calls for semiannual payments of $15,000 each,payable on June 30 and December 31 of each year.The machines were acquired by Nola at a cost of $90,000 and are expected to have a useful life of five years with no expected residual value.
Required:
Prepare the appropriate journal entries for the lessor from the inception of the lease through the end of 2016.