Metlock Dairy leases its milking equipment from Bonita Finance Company under the following lease terms. 1. 2 3. The lease term is 10 years, noncancelable, and requires equal rental payments of $31,200 due at the beginning of each year starting January 1.2020 The equipment has a fair value at the commencement of the lease (January 1, 2020) of $236.108 and a cost of $260,000 on Bonita Finance's books. It also has an estimated economic life of 15 years and an expected residual value of $15,300, though Metlock Dairy has guaranteed a residual value of $21.600 to Bonita Finance The lease contains no renewal options, and the equipment reverts to Bonita Finance upon termination of the lease. The equipment is not of a specialized use 4. Metlock Dairy's incremental borrowing rate is 8% per year. The implicit rate is also 8% 5. Metlock Dairy depreciates similar equipment that it owns on a straight-line basis 6. Collectibility of the payments is probable Click here to view factor tables Prepare the journal entries for the lessee and lessor at January 1, 2020, and December 31, 2020 (the lessee's and lessor's year- end). Assume no reversing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts, Round present value factor calculations to 5 decimal places, es. 1.25125 and final answers to O decimal places, eg. 5.250.) Date Account Titles and Explanation Lessee: (To record the lease.) (To record lease payment.) Lessor (To record the lease.) (To record lease payment.) Debit Cre (To record lease payment.) Lessor: (To record the lease.) (To record lease payment.) Lessee: (To record interest.) (To record amortization.) Lessor