am not surebif that dates are correct

1. Sheridan Company, as lessee, enters into a lease agreement on July 1, 2021, for equipment. The following data are relevant to the lease agreement: The term of the noncancelable lease is 4 years, with no renewal option Payments of $874,647 are due on July 1 of each year. The fair value of the equipment on July 1, 2021 is $3,170,000. The equipment has an economic life of 6 years with no salvage value Sheridan depreciates similar machinery it owns on the sum-of-the-year digits basis. The lessee pays all executory costs. Sheridan's incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicit rate of 7% in computing the lease payments. 2. 3 4. 5. Click here to view factor tables. (a) Your answer is correct Indicate the type of lease Sheridan Company has entered into and what accounting treatment is applicable. Capital Lease Method e Textbook and Media List of Accounts Prepare the journal entries on Sheridan's books that relate to the lease agreement for the following dates: (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to decimal places eg. 5,250.) July 1, 2021 December 31, 2021. July 1, 2022 December 31, 2022 1 2. 3. 4. Date Account Titles and Explanation Debit July 1, 2021 December 31, 2021 V (To record amortization.) July 1.2022 (To record interest payment.) December 31, 2022 December 31.2022 (To record amortization.) December 31, 2022 (To record interest payment.) e Textbook and Media