Sunland Corporation enters into a 7-year lease of equipment on December 31, 2016, which requires 7 annual payments of $39,300 each, beginning December 31, 2016. In addition, Sunland guarantees the lessor a residual value of $19,200 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 $9,200. The equipment has a useful life of 7 years. Prepare Sunlands' December 31, 2016, journal entries assuming the implicit rate of the lease is 9% 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 decimal places e.g. 5,275.) Click here to view the factor table Date Account Titles and Explanation Debit Credit December 31, 2016 Right-of-Use Asset 227050 T Lease Liability O 2050 (To record the lease liability) December 31, 2016 Lease Liability Cash 39300 (To record lease payment)