Flounder Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $42,200 each, beginning December 31, 2019. In addition, Flounder guarantees the lessor a residual value of $19,500 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 $9,750. The equipment has a useful life of 6 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 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2019 (To record the lease liability) December 31, 2019 (To record lease payment)