Recording Finance Lease Journal Entries$-$ Guaranteed Residual Value

Smith, the lessee, signs an $8-$year lease agreement for a floor of a building on December $31$ that requires annual payments of $$70,000,$ beginning immediately. The residual value oit $$50,000$ is guaranteed to the lessor at the end of the lease term. Smith estimates a residual value of $$30,000$ at the end of the lease term Smith is aware of the lessor's implicit rate of interest of $7\%.$ Record Smith's journal entries on December $31,$ assuming that the lease is properly classified as a finance lease.

Note: Round your answers to the nearest whole dollar.

$\backslash$table$[[$Date$,$Account Name,,,Dr$.,$Cr$.],[$Dec$.31,$Right$-$of$-$Use Asset,,$,458,890vv,0vv$