CALCULATOR FALSCREEN PRINTER VERSION Brief Exercise 21A-22 Your answer is partially correct. Try again. Sheridan Corporation enters into a 7-year lease of equipment on December 31, 2016, which requires 7 annual payments of $37,300 each, beginning December 31, 2016. In addition, Sheridan guarantees the lessor a residual value of $19.400 at the end of the lease. However, Sheridan believes it is probable that the expected residual value at the end of the lease term will be $9,400. The equipment has a useful life of 7 years Prepare Sheridans December 31, 2016, journal entries assuming the implicit rate of the lease is 9% and this is known to Sheridan. (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 Malaswers to decimal places e.g. 5,275.) Click here to view the factor table Date Account Titles and Explanation December 31, 2016 Right-of-Use Asset Debit Credit 18280 Lease Liability (To record the lease ability) December 31, 2016 Jease Liability I can To record fease payment)