Coronado Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 annual payments of $37,300 each, beginning December 31, 2019. In addition, Coronado guarantees the lessor a residual value of $19.400 at the end of the lease. However, Coronado believes it is probable that the expected residual value at the end of the lease term will be $9,400. The equipment has a useful life of 7 years. Assume that for Lost Ark Company, the lessor, collectibility of lease payments is probable and the carrying amount of the equipment is $170,000. Prepare Lost Ark's 2019 and 2020 journal entries, assuming the implicit rate of the lease is 9% and this is known to Coronado. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places eg. 5,275. Record journal entries in the order presented in the problem.) Click here to view factor tables Date Account Titles and Explanation er 31, 2019 V Lease Receivable Cost of Goods Sold Sales Revenue Inventory (To record the lease) 31.2019 V Cash 31.2020 Lease Receivable (To record receipt of lease payment) Cash Lease Receivable Interest Revenue Debit 37300 170000 37300 37300 Credit 37300 170000 37300 12162 25138