Shamrock Company leased equipment from Costner Company, beginning on December 31, 2016. The lease term is 7 years and requires equal rental payments of $38,869 at the beginning of each year of the lease, starting on the commencement date (December 31, 2016). The equipment has a fair value at the commencement date of the lease of $230,000, an estimated useful life of 7 years, and no estimated residual value. The appropriate interest rate is 6%. Prepare Shamrock's 2016 and 2017 journal entries, assuming Shamrock depreciates similar equipment it owns on a straight-line basis. (Credit account titles are automatically Indented when the 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 0 decimal places, e.g. S,275.) Date Account Titles and Explanation Debit Credit 12/31/16 (To record lease liability) 12/31/16 (To record lease payment 12/31/17