Hello! I finished he problem for the most part, I just need help with the portions that are highlighted red. Please and thank you!

Sandhill Incorporated leases a piece of machinery to Monty Company on January 1, 2020, under the following terms. 1. The lease is to be for 4 years with rental payments of $11,093 to be made at the beginning of each year. 2. The machinery' has a fair value of $59,176, a book value of $44,160, and an economic life of 10 years. 3. At the end of the lease term, both parties expect the machinery to have a residual value of $22,080. To protect against a large loss, Sandhill requests Monty to guarantee $15,310 of the residual value, which Irving agrees to do. . The lease does not transfer ownership at the end of the lease term, does not have any bargain purchase options, and the asset is not of a specialized nature. 5. The implicit rate is 5%, which is known by Monty. 6. Collectibility of the payments is probable. Click here to view factor tables. Your answer is correct. Evaluate the criteria for classification of the lease, and describe the nature of the lease. For the lessee, it is a [ finance lease #] , and for the lessor, it is a [ sales-type lease #] eTextbook and Media List of Accounts Your answer is correct. Prepare the journal entries for Monty for the year 2020. (Credit account titles are automatically Indented when the 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. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to O declmal places e.g. 5,275.] Date Account Titles and Explanation Debit Credit Jan. 1 Right-of-Use Asset 41303 Lease Liability 41303 To record lease Jan. 1 Lease Liability 11093 Cash 11093 To records first lease payment) Dec. 31 |Interest Expense 1511 Lease Liability 1511 To record accrued interest) Dec. 31 Amortization Expense 10326 Right-of-Use Asset 10326 To record amortization expensePrepare the journal entries for Sandhill for the year 2020. (Credit account titles are automatically indented when the 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. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Lease Receivable 59.176 Cost of Goods Sold 44.160 Sales Revenue 59.176 Inventory 44.160 (To record lease) Jan. 1 Cash 11093 Lease Receivable 11093 "To record first lease payment) Dec. 31 Interest Receivable 1511 Interest Revenue 1511 (To record lease revenue) e Textbook and Media List of Accounts Your answer is partially correct. Evaluate the criteria for classification of the lease, and describe the nature of the lease, assuming that Monty did not guarantee any amount of the expected residual value. For the lessee, it is a |sales-type lease * , and for the lessor, it is a operating lease +Suppose Monty did not guarantee any amount of the expected residual value. Prepare the journal entries for Monty for the year 2020. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1 25124 and the final answer to O decimal places e g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 |Right-of-Use Asse 41303 Lease Liability "To record lease) Jan. 1 Lease Liability 11093 Cash 11093 To record first lease payment) Dec. 31 Amortization Expense 11093 Lease Liability 1511 Right-of-Use Asset 9582 (To record interest and amortization) eTextbook and Media Assistance Used e Textbook 1 eTextbook 2 List of Accounts Your answer is partially correct. Suppose Monty did not guarantee any amount of the expected residual value. Prepare the journal entries for Sandhill for the year 2020. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry Is required, select "No Entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e g. 1 25124 and the final answer to O decimal places e.g. 5,275) Date Account Titles and Explanation Debit Credit Jan. 1 |Cash 11093 Lease Receivable 11093 To record lease payments Dec. 31 Cash 3070 Lease Revenue 3070 To record lease revenue) Dec. 31 Depreciation Expense 22080 Accumulated Depreciation-Equipment 22080 To record depreciation)