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Metlock Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. The

Metlock 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 $240,000. The fair value of the asset at January 1, 2020, is $240,000.
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 $24,323, none of which is guaranteed.
4. The agreement requires equal annual rental payments, beginning on January 1, 2020.
5. Collectibility of the lease payments by Metlock is probable.
Assuming the lessor desires a 15% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and the final answer to 0 decimal places e.g. 5,275.)
Amount of the annual rental payment $enter the Amount of the annual rental payment in dollars

METLOCK LEASING COMPANY (Lessor) Lease Amortization Schedule. Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g. 5,275.)

Date

Annual Lease Payment Plus URV

Interest on Lease Receivable

Recovery of Lease Receivable

Lease Receivable

1/1/20

$enter a dollar amount

$enter a dollar amount

$enter a dollar amount

$enter a dollar amount

1/1/20

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

1/1/21

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

1/1/22

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

1/1/23

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

1/1/24

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

12/31/25

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

$enter a total amount for this column

$enter a total amount for this column

$enter a total amount for this column

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. Assume the lessors annual accounting period ends on December 31, and it does not use reversing entries.Record journal entries in the order presented in the problem.)

choose the correct Date

Account Titles and Explanation

Debit

Credit

1/1/2012/31/201/1/2112/31/21

enter an account title To record the lease on January 1 2017

enter a debit amount

enter a credit amount

enter an account title To record the lease on January 1 2017

enter a debit amount

enter a credit amount

enter an account title To record the lease on January 1 2017

enter a debit amount

enter a credit amount

enter an account title To record the lease on January 1 2017

enter a debit amount

enter a credit amount

(To record the lease)

1/1/2012/31/201/1/2112/31/21

enter an account title To record the receipt of lease payment on January 1 2017

enter a debit amount

enter a credit amount

enter an account title To record the receipt of lease payment on January 1 2017

enter a debit amount

enter a credit amount

(To record the receipt of lease payment)

1/1/2012/31/201/1/2112/31/21

enter an account title for the journal entry on December 31 2017

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31 2017

enter a debit amount

enter a credit amount

1/1/2012/31/201/1/2112/31/21

enter an account title for the journal entry on January 1 2018

enter a debit amount

enter a credit amount

enter an account title for the journal entry on January 1 2018

enter a debit amount

enter a credit amount

1/1/2012/31/201/1/2112/31/21

enter an account title for the journal entry on December 31 2017

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31 2017

enter a debit amount

enter a credit amount

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