Headland Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $37,100 each, beginning December 31, 2019. In addition, Headland guarantees the lessor a residual value of $20,900 at the end of the lease. However, Headland believes it is probable that the expected residual value at the end of the lease term will be $10,450. The equipment has a useful life of 6 years. Prepare Headlands' December 31, 2019, journal entries assuming the implicit rate of the lease is 10% and this is known to Headland. (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 December 31, 2019 December 31, 2019 Account Titles and Explanation (To record the lease liability) (To record lease payment) Debit Credit