Brief Exercise 21 - 9 [ Your answer is partially correct . Try again . Sheridan Corporation Enters into a 7 - year lease of equipment on January 1 ,

Please help and explain the first part. What factor table would be used here.

Brief Exercise 21 - 9[ Your answer is partially correct . Try again .Sheridan Corporation Enters into a 7 - year lease of equipment on January 1 , 2017 , which requires ? annual payments of $ 39 , 500 each , beginning January 1 , 2017 . In addition , Sheridanguarantees the lessor a residual value of $ 20, 200 at lease -end . The equipment has a useful life of ? years .Prepare Sheridan " January 1 , 2017 , journal Entries assuming an interest rate of 1 1%'0 . ( Credit account titles are automatically indented when amount is entered . Do not indent*manually . If no entry is required , select " NO Entry " For the account titles and enter " 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. 58, 971 .)Click here to view Factor tables*DateAccount Titles and ExplanationDebitCreditJanuary 1 , 2017| Leased Equipment*25.5800Lease Liability*255800[ To record the lease . "January 1 , 2017| Lease Liability3950 0Cash3.9500[ To record First lease payment . )Click if you would like to Show Work for this question : Open Show WorkSHOW LIST OF ACCOUNTS*