Sheffield Corporation leased equipment to Shamrock, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $ 1.267 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $ 9,300, a book value of $ 7,300, and Sheffield expects a residual value of $ 6,800 at the end of the lease term. Sheffield set the lease payments with the intent of earning a 6% return, though Shamrock is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature Suppose instead of a 3-year lease term, Shamrock and Sheffield agree to a one-year lease with a payment of $ 1.267 at the start of the lease. Prepare necessary journal entry for Shamrock in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20