Sheffield Corporation enters into a 7-year lease of equipment on December 31,2019 , which requires 7 annual payments of $39,500 each, beginning December 31, 2019. In addition, Sheffield guarantees the lessor a residual value of $20,700 at the end of the lease. However, Sheffield believes it is probable that the expected residual value at the end of the lease term will be $10,350. The equipment has a useful life of 7 years. Prepare Sheffields' December 31, 2019, journal entries assuming the implicit rate of the lease is 11% and this is known to Sheffield. (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 0 decimal places e.g. 5,275.) Click here to view factor tables. D 3 D 3