The following facts pertain to a noncancelable lease agreement between Metlock Leasing Company and Bonita Company, a lessee Inception date Annual lease payment due at the beginning of May 1, 2017 $19,199 45 $4,000 each year, beginning with May 1,2017 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10 years $67,000 $84,000 9 9 The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor The lessee assumes responsibility for all executory costs Prepare a lease amortization schedule for Metlock Leasing Company for the 5 year lease term (Round answers to 2 decimal places, e g 16 25 ,) METLOCK LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus Interest on Lease Recovery of Lease Receivable Date Receivable Lease Receivable 84,000 19,199 45 19,199 45 13,367 4 14,570 47 15,881 81 17,311 17 3,669 72 64,800 55 51,433 15 36,862 68 20,980 87 3,669 8 19,199 45 5,832 05 4,628 98 3,317 64 19,199 45 5 1 20 19,199 45 5 1 21 19,199 45 1,888 28 4 30 22 4,000 330 28 0 99,997 25$ 15,997 23$ Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2017,2018, and 2019 The lessor's accounting period ends on December 31 Reversing entries are not used by Metlock (Credit account titles are automatically indented when amount is entered Do not indent manually Round answers to 2 decimal places, eg 16 25 ) Date Account Titles and Explanation Debit Credit Sales Revenue 84,000 Cost of Goods Sold 67,000 Lease Receivable 84,000 Inventory 67,000 To record the lease ) Lease Liability 19,199 45 Cash 19,199 45 (To record lease payment ) 12 31 17 Depreciation Expense Leased Equipment Lease Liability Property Tax Expense Interest Expense 12 31 17 5,832 05 Cash 19,199 45

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The following facts pertain to a noncancelable lease agreement between Metlock Leasing Company and Bonita Company, a lessee  Inception date  Annual lease payment due at the beginning of May 1, 2017 $19,199 45 $4,000 each year, beginning with May 1,2017 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10 years $67,000 $84,000 9  9  The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor  The lessee assumes responsibility for all executory costs  Prepare a lease amortization schedule for Metlock Leasing Company for the 5 year lease term  (Round answers to 2 decimal places, e g  16 25 ,) METLOCK LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus Interest on Lease Recovery of Lease Receivable Date Receivable Lease Receivable 84,000 19,199 45 19,199 45 13,367 4 14,570 47 15,881 81 17,311 17 3,669 72 64,800 55 51,433 15 36,862 68 20,980 87 3,669 8 19,199 45 5,832 05 4,628 98 3,317 64 19,199 45 5 1 20 19,199 45 5 1 21 19,199 45 1,888 28 4 30 22 4,000 330 28 0 99,997 25$ 15,997 23$ Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2017,2018, and 2019  The lessor's accounting period ends on December 31  Reversing entries are not used by Metlock  (Credit account titles are automatically indented when amount is entered  Do not indent manually  Round answers to 2 decimal places, eg  16 25 ) Date Account Titles and Explanation Debit Credit Sales Revenue 84,000 Cost of Goods Sold 67,000 Lease Receivable 84,000 Inventory 67,000 To record the lease ) Lease Liability 19,199 45 Cash 19,199 45 (To record lease payment ) 12 31 17 Depreciation Expense Leased Equipment Lease Liability Property Tax Expense Interest Expense 12 31 17 5,832 05 Cash 19,199 45

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The following facts pertain to a noncancelable lease agreement between Metlock Leasing Company and Bonita Company, a lessee. Inception date: Annual lease payment due at

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