Marin Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $41,000 each, beginning December 31, 2019. In addition, Marin guarantees the lessor a residual value of $21,300 at the end of the lease. However, Marin believes it is probable that the expected residual value at the end of the lease term will be $10,650. The equipment has a useful life of 6 years. Prepare Marins' December 31, 2019, journal entries assuming the implicit rate of the lease is 11% and this is known to Marin.

Date	Account Titles and Explanation	Debit	Credit
December 31, 2019	Right to use asset
	Lease Liability
	(To record the lease liability)
December 31, 2019	Lease Liability
	Cash
	(To record lease payment)