Indigo Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 annual payments of $37,300 each, beginning December 31, 2019. In addition, Indigo guarantees the lessor a residual value of $19,400 at the end of the lease. However, Indigo believes it is probable that the expected residual value at the end of the lease term will be $9,700. The equipment has a useful life of 7 years. Prepare Indigos' December 31, 2019, journal entries assuming the implicit rate of the lease is 9% and this is known to Indigo. (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 decimal places eg. 5,275.) Click here to view factor tables Account Titles and Explanation Debit Credit Date December 31, 2019 Equipment 204591 Lease Liability 204591 (To record the lease liability) December 31, 2019 Lease Liability 37300 Cash 37300 (To record lease payment)