Exercise 21-05 Metiock Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $291,000. The fair value of the asset at January 1, 2020, is $291,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $29,100, none of which is guaranteed The agreement requires equal annual rental payments, beginning on January 1, 2020 5. Collectibility of the lease payments by Metlock is probable. 4. Click here to view factor tables 2) Your answer is incorrect. Try again. Assuming the lessor desires a 11% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as di and the final answer to 0 decimal places e... 5,275.) Amount of the annual rental payment 55,965 a your answer is partially correct. Try again. Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to decimal places e.g. 5,275.) METLOCK LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus Recovery of Lease Receivable Receivable Lease Receivable 1/1/20 291,000 Interest on Lease Date URV . 1/1/20 55,965 55,965 M 1/1/21 55,965 1/1/22 55,965 1/3/23 55,965 1/1/24 55,965 10125 3 1/1/22 55,965 1/1/23 55,965 1/1/24 55,965 1/1/25 55,965 12/31/25 55,965 Your answer is partially correct. Try again. Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue and it does not use reversing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record jou Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable Cost of Goods Sold Sales Revenue Equipment 100000 DO (To record the lease) 1/1/20 Cash Lease Receivable (To record the receipt of lease payment) 12/31/20 Interest Receivable PSD for 2000 2001 and the green there, and the regioner perder et enested account mainted when mantenimiento antes in the wested in the prom) Cred The talenten WO RE Cheyou with the work for this TAR