On January 1, 2020, Blue Animation sold a truck to Peete Finance for $40,000 and immediately leased it back. The truck was carried on Blues books at $35,000. The term of the lease is 5 years, there is no bargain purchase option, and title does not transfer to Blue at lease-end. The lease requires 5 equal rental payments of $9,239 at the end of each year (first payment on January 1, 2018). The appropriate rate of interest is 5%, the truck has a useful life of 5 years, with no expected residual value at the end of the lease term. Prepare Blues 2020 journal entries.

Date	Account Titles & Explanation	Debit	Credit
01/01/2020	Cash	40,000
	????		40,000
12/31/2020	????
	????