Sandhill Corporation enters into a 5-year lease of equipment on January 1, 2017, which requires 5 annual payments of $36,900 each, beginning January 1, 2017. In addition, Sandhill guarantees the lessor a residual value of $21,400 at lease-end. The equipment has a useful life of 5 years. Prepare Sandhill January 1, 2017, journal entries assuming an interest rate of 10%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. 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, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Date Account Titles and Explanation Debit Credit January 1, 2017 Lease Receivable Equipment (To record the lease.) January 1, 2017 Cash Lease Receivable (To record first lease payment.)