ment Brief Exercise 21A-23 Your answer is partially correct. Try again. Skysong Corporation enters into a 7-year lease of equipment on December 31, 2016, which requires 7 annual payments of $39,300 each, beginning December 31, 2016. In addition, Skysong guarantees the lessor a residual value of $19,200 at the end of the lease. However, Skysong believes it is probable that the expected residual value at the end of the lease term will be $9,200. The equipment has a useful life of 7 years. Assume that for Lost Ark Company, the lessor, collectibility of lease payments is probable and the carrying amount of the equipment is $170,000 Prepare Lost Ark's 2016 and 2017 journal entries, assuming the implicit rate of the lease is 9% and this is known to Skysong. (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 decimal places e.g. 5,275.) Click here to view the factor table, Debit Date Account Titles and Explanation December 31, 2016 Lease Receivable Lease Receivable cost of Goods Sold a te Receivable g Tsales Revenue Inventory (To record the lease) December 31, 2016 Cash Lease Receivable (To record receipt of lease payment) December 31, 2017 Cash Y - Cash Interest Receivable Lease Receivable Click if you would like to Show Work for this questioni Open Show Work