Blossom Corporation, which uses ASPE, leased equipment it had manufactured at a cost of $157,143 for Vaughn, the lessee. The equipment's regular selling price is $200,000. The term of the lease is 6 years, beginning January 1, 2020, with equal rental payments of $38,370 at the beginning of each year. Vaughn pays all executory costs directly to third parties. The equipment's fair value at the lease's inception is $200,000. The equipment has a useful life of seven years with no residual value. The lease has an implicit interest rate of 6%, no bargain purchase option, and no transfer of title. Collectibility is reasonably assured, with no additional costs to be incurred by Blossom. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare Blossom Corporation's January 1, 2020 journal entries at the inception of the lease and the entry at December 31, 2020, to record interest. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, Date Account Titles and Explanation Debit Credit Jan. 1.2020 Lease Receivable 220384 Sales Revenue Unearned Interest Income (To record inception of lease.) Jan 1, 2020 Cost of Goods Sold Inventory (To record cost of goods sold.) Jan. 1, 2020 Cash DI TOTO Lease Receivable (Collection of first lease payment.) Dec. 31, 2020 Unearned Interest Income Interest Income (To record interest income.)