Pearl Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $40,100 each, beginning December 31, 2019. In addition, Pearl guarantees the lessor a residual value of $20,300 at the end of the lease. However, Pearl believes it is probable that the expected residual value at the end of the lease term will be $10,150. The equipment has a useful life of 6 years. Prepare Pearls' December 31, 2019, journal entries assuming the implicit rate of the lease is 11% and this is known to Pearl. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Click here to view factor tables. Date Account Titles and Explanation December 31, 2019 Right-of-Use Asset Lease Liability (To record the lease liability) December 31, Lease Liability 2019 Cash (To record lease payment) Debit 340,587 40,100 Credit 340,587 40,100