Skysong Corporation enters into a 5-year lease of equipment on December 31, 2019, which requires 5 annual payments of $39,200 each, beginning December 31, 2019. In addition, Skysong guarantees the lessor a residual value of $21,100 at the end of the lease. However, Skysong believes it is probable that the expected residual value at the end of the lease term will be $10,550. The equipment has a useful life of 5 years. Prepare Skysongs' December 31, 2019, journal entries assuming the implicit rate of the lease is 9% and this is known to Skysong. (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.)

Date Account Titles and Explanation Debit Credit December 31, 2019 (To record the lease liability) December 31, 2019 (To record lease payment) List of Accounts Save for Later