Help me

On January 1, 2017, Indigo Animation sold a truck to Peete Finance for $44,000 and immediately leased it back. The truck was carried on Indigo's books at $37,000. The term of the lease is 3 years, there 2018). The appropriate rate of interest is 6%, the truck has a useful life of 5 years, and the residual value at the end of the lease term is expected to be $14,000, none of which is guaranteed no bargain purchase option, and title does not transfer to Indigo at lease-end. The lease requires three equal rental payments of $13,000 at the end of each year (first payment on January 1, Prepare Indigo's 2017 journal entries. (Credit account titles are automatically indented when the 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. 5,265.) Click here to view the factor table. Account Titles and Explanation Date Debit Credit 1/1/17 Cash 44000 Trucks 37000 7000 Gain on Disposal of Plant Assets (To record sale of truck) 1/1/17 Leased Equipment 44000 44000 Lease Liability (To record lease liability) 12/31/17 Interest Expense 10297 Lease Liability 2703 Cash 13000