Shamrock Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Pharoah Company. The term of the non-cancelable lease is 2 years and payments are required at the end of each year. The following information relates to this agreement: 1. 2 Pharoah has the option to purchase the equipment for $17.500 upon termination of the lease. It is not reasonably certain that Pharoah will exercise this option. The equipment has a cost of $150,000 and fair value of $199,000 to Shamrock Leasing The useful economic life is 2 years, with a residual value of $17.500 Shamrock Leasing desires to earn a return of 5% on its investment Collectibility of the payments by Shamrock Leasing is probable. 3. 4. Prepare the journal entries on the books of Shamrock Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (Credit account titles are automatically indented when 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 decimal placeses 5,275 Date Account Titles and Explanation Debit Credit Assuming that Pharoah exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on Shamrock Leasing's books. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit 12/31/21