Marigold Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $39,800 each, beginning December 31, 2019. In addition, Marigold guarantees the lessor a residual value of $21,100 at the end of the lease. However, Marigold believes it is probable that the expected residual value at the end of the lease term will be $10,550. The equipment has a useful life of 6 years. Prepare Marigolds' December 31, 2019, journal entries assuming the implicit rate of the lease is 10% and this is known to Marigold. (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)