On December 31, 2019, Teal Mountain Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Teal Mountain to make annual payments of $8,200 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,500 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Teal Mountain uses the straight-line method of depreciation for all of its plant assets. Teal Mountain's incremental borrowing rate is 12%, and the lessor's implicit rate is unknown. Click here to view factor tables. (a) Your answer is correct. What type of lease is this? This is a/an finance lease. e Textbook and Media List of Accounts Your answer is partially correct. Prepare all necessary journal entries for Teal Mountain for this lease through December 31, 2020. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.) late Account Titles and Explanation Debit Credit 1/19 Right-of-Use Asset 33106 Lease Liability 33106 (To record the lease) 1/19 8200 Lease Liability 8200 (To record first lease payment) . INO 1/20 Interest Expense Lease Liability (To record first lease payment) [/20 Interest Expense Lease Liability (To record amortization of the right-of-use asset) 31/20 (To record interest expense)