Sweet Corporation enters into a 5-year lease of equipment on December 31, 2019, which requires 5 annual payments of $37,800 each, beginning December 31, 2019. In addition, Sweet guarantees the lessor a residual value of $20,500 at the end of the lease. However, Sweet believes it is probable that the expected residual value at the end of the lease term will be $10,250. The equipment has a useful life of 5 years. Prepare Sweets' December 31, 2019. journal entries assuming the implicit rate of the lease is 10% and this is known to Sweet. (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 eg. 5,275.) Click here to view factor tables. Debit Credit Date Account Titles and Explanation December 31, 2019 Right-of-Use Asset Lease Liability (To record the lease liability) December 31, 2019 Lease Liability 37,800 Cash 37.800 (To record lease payment)