Tamarisk Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 annual payments of $37,300 each, beginning December 31, 2019. In addition, Tamarisk guarantees the lessor a residual value of $19,400 at the end of the lease. However, Tamarisk believes it is probable that the expected residual value at the end of the lease term will be $9,700. The equipment has a useful life of 7 years. Prepare Tamarisks' December 31, 2019, journal entries assuming the implicit rate of the lease is 9% and this is known to Tamarisk. (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
December 31, 2019