Please assist with answering the correct Account titles and figures in red! Please show all work! Thank you!

Your answer is partially correct. Try again Assume that on January 1, 2017, Elmer's Restaurants sells a computer system to Crane Finance Co. for $640,000 and immediately leases the computer system back. The relevant information is as follows. The computer was carried on Elmer's books at a value of $560,000 The term of the non-cancelable lease is 3 years; title will not transfer to Elmer's, and the expected residual value at the end of the lease is $410,000, all of which is unguaranteed The lease agreement requires equal rental payments of $117,590 at the beginning of each year The incremental borrowing rate for Elmer is 5%. Elmer is aware that Crane Finance Co. set the annual rental to insure a rate of return of 5%. The computer has a fair value of $640,000 on January 1, 2017, and an estimated economic life of 10 years. 1. 2. 3. 4 5. Prepare the journal entries for both the lessee and the lessor for 2017 to reflect the sale and leaseback agreement. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.) r table Date Account Titles and Explanation Debit Credit Imer's Restaurants (Lessee) Cash 640000 Equipment 560000 Gain on Sale of Equipment 80000 To record sale of equipment) Right-of-Use Asset 336238 Lease Liability 336238 To record the lease) Lease Expense 64000 Lease Liability 64000 To record lease liability) 12/31/17 Depreciation Expense Lease Liability Crane Finance Co. (Lessor) | Equipment act 640000 (To record purchase of equipment) Lease Liability 64000 Lease Liability 64000 (To record the leaseback) Cash 117590 Lease Revenue 117590 (To record the recognition of the revenue) Depreciation Expense 64000 (To record depreciation expense on the leased equipment) AVAILABLE ACCOUNT TITLES: Lease Expense Cash Lease Revenue Accumulated Depreciation-Equipment Equipment Rent Expense Depreciation Expense Lease Liability Right-of-Use Asset Unearned Lease Revenue Gain on Sale of Equipment