Sandhill Corporation enters into a 6-year lease of equipment on December 31,2024, which requires 6 annual payments of $37,400 each, beginning December 31,2024 . In addition, Sandhill guarantees the lessor a residual value of $22,000 at the end of the lease. However, Sandhill believes it is probable that the expected residual value at the end of the lease term will be $11,000. The equipment has a useful life of 6 years. Prepare Sandhills' December 31, 2024, journal entries, assuming the implicit rate of the lease is 11% and this is known to Sandhill. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. 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 
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