On January 1, 2020, Oriole Corporation sold a machine to Quick Finance for $159,000 and immediately leased it back. The machine was carried on Orioles books at $114,000. The term of the lease is 3 years, there is no bargain purchase option, and title does not transfer to Oriole at lease-end. The lease requires three equal rental payments of $35,100 at the end of each year (first payment on January 1, 2021). The appropriate rate of interest is 7%, the machine has a useful life of 5 years, and the residual value at the end of the lease term is expected to be $56,000, none of which is guaranteed. Click here to view factor tables. Prepare Orioles journal entries through the first payment date of January, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
1/1/2012/31/201/1/21
	(To record sale)
1/1/2012/31/201/1/21
	(To record lease)
1/1/2012/31/201/1/21
1/1/2012/31/201/1/21