Exercise 21-4 information relates to this agreement: Sheridan Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Skysong Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following 1. Skysong Company has the option to purchase the equipment for $17,400 upon termination of the lease. 2. The equipment has a cost and fair value of $155,000 to Sheridan Leasing Company. The useful economic life is 2 years, with a salvage value of $17,400. 3. 4. Skysong Company is required to pay $4,500 each year to the lessor for executory costs. Sheridan Leasing Company desires to earn a return of 10% on its investment. 5. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lesson. Click here to view factor tables (a) Prepare the journal entries on the books of Sheridan Leasing to reflect the payments received under the lease and to recognize income for the years 2017 and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 0.527552 and the final answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit(b) Assuming that Skysong Company exercises its option to purchase the equipment on December 31, 2018, prepare the journal entry to reflect the sale on Sheridan's books. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 0.527552 and the final answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 12/31/18 SHOW LIST OF ACCOUNTS LINK TO TEXT