Pharoah Incorporated leases a piece of machinery to Sheffield Company on January 1, 2025, under the following terms. 1. The lease is to be for 4 years with rental payments of $16,111 to be made at the beginning of each year. 2. The machinery has a fair value of $84,268, a book value of $62,880, and an economic life of 10 years. 3. At the end of the lease term, both parties expect the machinery to have a residual value of $31,440. To protect against a large loss, Pharoah requests Sheffield to guarantee $22,330 of the residual value, which Sheffield agrees to do. 4. The lease does not transfer ownership at the end of the lease term, does not have any bargain purchase options, and the asset is not of a specialized nature. 5. The implicit rate is 5%, which is known by Sheffield. 6. Collectibility of the payments is probable. is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Jan. 1 Debit Credit (To record lease payments) Dec. 31 (To record lease revenue) Dec. 31 (To record depreciation) Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Jan. 1 Debit (To record lease) Jan. 1 (To record first lease payment) Dec. 31 (To record lease revenue) Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Jan. 1 Debit Credit (To record lease) Jan. 1 (To records first lease payment) Dec. 31 (To record accrued interest) Dec. 31 (To record amortization expense) 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, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Jan. 1 (To record lease) Jan. 1 (To record first lease payment) Dec. 31 Dec. 31 (To record interest and amortization) Debit Credit