Flounder Incorporated leases a piece of equipment to Shamrock Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,694 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $24,900, a book value of $19,900, and both parties expect a residual value of $8,400 at the end of the lease term, though this amount is not guaranteed. Flounder set the lease payments with the intent of earning a 4% return, and Shamrock is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Suppose Shamrock incurs initial direct costs of $750 related to the lease. Prepare the journal entries for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)