Please help me figure out the amount for the last Journal Entry date 12/31/21 Please provide explanation/calculation. Thank you.

Sweet Leasing Company agrees to lease equipment to Pharoah Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $518,000, and the fair value of the asset on January 1, 2020, is $648,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $50,000. Pharoah estimates that the expected residual value at the end of the lease term will be 50,000. Pharoah amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020. 5. The collectibility of the lease payments is probable. 6. Sweet desires a 11% rate of return on its investments. Pharoah's incremental borrowing rate is 12%, and the lessor's implicit rate is unknown. (Assume the accounting period ends on December 31.) - Your answer is partially correct. Prepare the journal entries Sweet would make in 2020 and 2021 related to the lease arrangement. (Credit account titles the order presented in the problem.) Debit Credit 648,000 518,000 648,000 518,000 119283.48 Date Account Titles and Explanation Lease Receivable Cost of Goods Sold Sales Revenue Inventory (To record the lease.) 1/1/20 Cash Lease Receivable (To record lease payment.) 12/31/20 - Lease Receivable Interest Revenue 1/1/21 , Cash Lease Receivable 12/31/21 - Lease Receivable Interest Revenue 119283.48 58158.82 58158.82 119283.48 119283.48 56111.02 56111.02 Save for Later