Sheridan Incorporated leases a piece of machinery to Concord Company on January 1, 2020, under the following terms. 1 2 3 The lease is to be for 4 years with rental payments of $15.426 to be made at the beginning of each year. The machinery has a fair value of $82.874, a book value of $61,840, and an economic life of 10 years. At the end of the lease term, both parties expect the machinery to have a residual value of $30,920. To protect against a large loss, Sheridan requests Concord to guarantee $21,940 of the residual value, which Concord agrees to do. The lease does not transfer ownership at the end of the lease term, does not have any bargain purchase options, and the asset is not of a specialized nature 5. The implicit rate is 5%, which is known by Concord, 6. Collectibility of the payments is probable. Click here to view factor tables Evaluate the criteria for classification of brand Prepare the journal entries for Concord for the year 2020. (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 present value factor calculations to 5 decimal places, s, 1.25124 and the final answer to decimal places 3.5,275) Date Account Titles and Explanation Debit Credit Jan. 1 (To record lease) Jan, 1 To records first lease payment Dec 31 To record accrued eest) Dec. 31 Prepare the journal entries for Sheridan for the year 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "Me Entry for the account titles and enter for the amounts. Round present value factor calculations to decimal places 125124 and the final answer to decimal placeres. 5.2753 Date Account Tities and Explanation Debit Credit lun. (Tor) To records Dec 176 cod Surpose Concord did not guarantee any amount of the expected residual value. Prepare the journal entries for Concord for the year 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "Ne Entry for the account titles and enter for the amounts. Round present value factor calculations to 5 decimal places, 1.25124 and the final answer to decimal places es. 5.275.) Date Account Titles and Explanation Debit Credit To record lense) lan i To record first payment) Dec 1 (to record standartin Support Concord did not guarantee any amount of the expected residual value. Prepare the journal entries for Sheridan for the year 2020. (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 present value factor calculations to 5 decimal places, ex. 1.25124 and the final answer to decimal places es 5.275.) Date Account Titles and Explanation Jan. 1 Debit Credit (To record de payments) Dec 31 To read lease) Dec 31 To neprecation) Texthook and Media