On January 1, 2017,SandhillDistributiors sold a warehouse to Jamble Leasing for $696,000and immediately leased it back. The warehouse was carried onSandhill' books at $297,000. The term of the lease is 20 years, and title transfers toSandhillat lease-end. The lease requires 20 equal rental payments of $70,889at the end of each year. The appropriate rate of interest is8%, and the truck has a useful life of 20 years with no salvage value. PrepareSandhill's 2017 journal 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 0 for the amounts.

On January 1, 2017, Sandhill Distributiors sold a warehouse to Jamble Leasing for $696,000 and immediately leased it back. The warehouse was carried on Sandhill' books at $297,000. The term of the lease is 20 years, and title transfers to Sandhill at lease-end. The lease requires 20 equal rental payments of $70,889 at the end of each year. The appropriate rate of interest is 8%, and the truck has a useful life of 20 years with no salvage value. Prepare Sandhill's 2017 journal 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 0 for the amounts.) Account Titles and Explanation Debit Credit Cash 696000 Buildings 29700 Unearned Prot on Sale-Leaseback 666300 (To record sale) Leased Equipment Lease Liability (To record lease) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation) Unearned Prot on Sale-Leaseback Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation) Unearned Profit on Sale-Leaseback Depreciation Expense (To amortize profit on sale-leaseback) Interest Expense Lease Liability Cash (To record rental payment)