Flounder Corporation enters into a 5-year lease of equipment on December 31, 2019, which requires 5 annual payments of $36,900 each, beginning December 31, 2019. In addition, Flounder guarantees the lessor a residual value of $21,400 at the end of the lease. However, Flounder believes it is probable that the expected residual value at the end of the lease term will be $10,700. The equipment has a useful life of 5 years. Prepare Flounders' December 31, 2019, journal entries assuming the implicit rate of the lease is 10% and this is known to Flounder. (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 e.g. 5,275.) Click here to view factor tables. Date Account Titles and Explanation Debit Credit December Leased Equipment 31, 2019 Lease Liability (To record the lease liability) December 31, 2019 Lease Liability 36900 1 O Type here to search DI W 47% 6:58 PM 4/14/2021