Helen Leasing Company signs an agreement on January 1, 2025, to lease equipment to Metlock Company. The following information relates to this agreement.

1.		The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.
2.		The fair value of the asset at January 1, 2025, is $84,000.
3.		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 $7,000, none of which is guaranteed.
4.		The agreement requires equal annual rental payments of $26,948.92 to the lessor, beginning on January 1, 2025.
5.		The lessees incremental borrowing rate is 5%. The lessors implicit rate is 4% and is unknown to the lessee.
6.		Metlock uses the straight-line depreciation method for all equipment.

Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

(a)

Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 2 decimal places, e.g. 5,275.15.)

METLOCK COMPANY (Lessee) Lease Amortization Schedule
Date		Annual Lease Payment		Interest on Liability		Reduction of Lease Liability		Lease Liability
1/1/25		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
1/1/25		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/26		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/27		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount