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Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2013. International Machines manufactured the equipment at a cost of $200,000. The equipment has a fair value of $260,000. Appropriate adjusting entries are made quarterly.
Required:
1. Prepare appropriate entries for Manufacturers Southern to record the arrangement at its commencement, January 1, 2013, and on March 31, 2013.
2. Prepare appropriate entries for International Machines to record the arrangement at its commencement, January 1, 2013, and on March 31,2013.
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