ubby Company specializes in leasing large storage units to other businesses. Kubby entered a contract to lease a storage unit to Riskey, Inc. for 4 years when that particular storage unit had a remaining useful life of 5 years. The fair value of the unit was $10,000 at the commencement of the lease on January 1, 2017. The present value of the five equal rental payments of $2,507 at the start of each year, plus the present value of a guaranteed residual value of $1,000, equals the fair value of $10,000, Kubby's implicit rate of return on the lease of 6%. The following is a correct, complete amortization schedule created by Kubby.

Date	Lease Payment	6% Interest on Outstanding Lease Receivable	Reduction of Lease Receivable	Balance of Lease Receivable
1/1/17 1/1/17 1/1/18 1/1/19 1/1/20 12/31/12 Total	0 2,507 2,507 2,507 2,507 1,000 11,028	0 0 450 326 195 57 1,028	0 2,507 2,057 2,181 2,312 943 10,000	10,000 7,493 5,436 3,255 943 0

Given the above schedule, make the appropriate entries at December 31, 2020, to record the accrual of interest and the return of the storage unit to Kubby (assuming the unit is returned on December 31, 2020, at the expected and guaranteed residual value of $1,000).