On January 1,2020 , Sheffield Company contracts to lease equipment for 5 years, agreeing to make a payment of $144,055 at the beginning of each year, starting January 1,2020. The leased equipment is to be capitalized at $632,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Sheffield's incremental borrowing rate is 6%, and the implicit rate in the lease is 7%, which is known by Sheffield. Title to the equipment transfers to Sheffield at the end of the lease. The asset has an estimated useful life of 5 years and no residual value. Click here to view factor tables. (b) Prepare the journal entries that Sheffield should record on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent monually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, es. 1.25124 and the final answers to 0 decimal places, es. 5.275.)