Sheridan Corporation, which uses ASPE, enters into a 6-year lease of equipment on September 1, 2020, that requires 6 annual payments of $27,000 each, beginning September 1, 2020. In addition, Sheridan guarantees the lessor a residual value of $17,000 at lease end. The equipment has a useful life of seven years. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE OF 1. Your answer is partially correct. Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepare Sheridan's September 1, 2020 journal entry assuming an interest rate of 11%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Equipment under Lease 88919 Obligations under Lease 71919 Cash 17000 Assume instead that Sheridan follows IFRS and that the amount expected to be paid under the residual value guarantee is $10,000. Calculate the amount of the right-of-use asset and prepare Sheridan's September 2020 journal entry, assuming an interest rate of 11%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to decimal places, e.g. 5,275.) Debit Credit Account Titles and Explanation Right-of-Use Asset 85177 Lease Liability 68177 Cash 17000 (To record inception of lease and first lease payment.)