Sunland Corporation enters into a 5-year lease of equipment on December 31, 2019, which requires 5 annual payments of $36,900 each, beginning December 31, 2019. In addition, Sunland guarantees the lessor a residual value of $21,400 at the end of the lease. However, Sunland believes it is probable that the expected residual value at the end of the lease term will be $11,400. The equipment has a useful life of 5 years. Assume that for Lost Ark Company, the lessor, collectibility of lease payments is probable and the carrying amount of the equipment is $120,000. Prepare Lost Ark's 2019 and 2020 journal entries, assuming the implicit rate of the lease is 10% and this is known to Sunland. (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 O decimal places e.g. 5,275. Record journal entries in the order presented in the problem.) Click here to view factor tables.