Mando Co. leased a piece of nonspecialized equipment for use in its operations from Empire Leasing on January 1, 2019. The 5 year lease requires lease payments of $50, beginning on January 1, 2019, and at each December 31 thereafter through 2022. The lease qualifies as an operating lease for the lessee. Mando's incremental borrowing rate is 11%. Mando incurred initial direct costs of $20. Initial direct costs were paid with cash between lease inception and lease commencement, and there were no prepayments or lease incentives. Record the journal entries for Mando Co. at lease commencement. Check all that apply. Mando Co. leased a piece of nonspecialized equipment for use in its operations from Empire Leasing on January 1, 2019. The 5 year lease requires lease payments of $50, beginning on January 1, 2019, and at each December 31 thereafter through 2022. The lease qualifies as an operating lease for the lessee. Mando's incremental borrowing rate is 11%. Mando incurred initial direct costs of $20. Initial direct costs were paid with cash between lease inception and lease commencement, and there were no prepayments or lease incentives.

Record the journal entries for Mando Co. at lease commencement. Check all that apply. Dr. Initial direct costs -- $20 Cr. Initial direct costs --- $20 Cr. Lease liability -- $225 Dr. Net investment in the lease -- $205 Dr. Lease expense -- $54 Dr. Right-of-use asset -- $205 Cr. Lease liability -- $205 Cr. Cash -- $20 Dr. Right-of-use asset -- $225