Skysong Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $36,300 each, beginning December 31, 2019. In addition, Skysong guarantees the lessor a residual value of $18,400 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 $9,200. The equipment has a useful life of 6 years. Prepare Skysongs' December 31, 2019, journal entries assuming the implicit rate of the lease is 11% 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.) Click here to view factor tables.

Date	Account Titles and Explanation	Debit	Credit
December 31, 2019
	(To record the lease liability)
December 31, 2019
	(To record lease payment)