Skysong Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Sheridan Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Sheridan has the option to purchase the equipment for $23,500 upon termination of the lease. It is not reasonably certain that Sheridan will exercise this option 2. The equipment has a cost of $270,000 and fair value of $322,000 to Skysong Leasing. The useful economic life is 2 years, with a residual value of $23,500 3. Skysong Leasing desires to earn a return of 5% on its investment. 4. Collectibility of the payments by Skysong Leasing is probable. Click here to view factor tables. Prepare the journal entries on the books of Skysong Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (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 decimal places g. 5,275.) Credit Date Account Titles and Explanation Debit Assuming that Sheridan exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on Skysong Leasing's books. (Credit account titles are automatically indented when amount is entered. Do not Indent manually.) Date Account Titles and Explanation Debit Credit 12/31/21