Problem 21A-2 b-f On January 1, 2017, Sandhill Company contracts to lease equipment for 5 years, agreeing to make a payment of $146,254 at the beginning of each year, starting January 1, 2017. The leased equipment is to be capitalized at S600,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Sandhill's incremental borrowing rate is 6%, and the implicit rate in the lease is 11%, which is known by Sandhill. Title to the equipment transfers to Sandhill at the end of the lease. The asset has an estimated useful life of 5 years and no residual value. Prepare the journal entries that Sandhill should record on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select Date Account Titles and Explanation Debit Credit January 1, 2017 (To record the lease.) To record lease payment.) Problem 21A-2 b-f On January 1, 2017, Sandhill Company contracts to lease equipment for 5 years, agreeing to make a payment of $146,254 at the beginning of each year, starting January 1, 2017. The leased equipment is to be capitalized at S600,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Sandhill's incremental borrowing rate is 6%, and the implicit rate in the lease is 11%, which is known by Sandhill. Title to the equipment transfers to Sandhill at the end of the lease. The asset has an estimated useful life of 5 years and no residual value. Prepare the journal entries that Sandhill should record on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select Date Account Titles and Explanation Debit Credit January 1, 2017 (To record the lease.) To record lease payment.)