The following facts pertain to a non-cancelable lease agreement between Ivanhoe Leasing Company and Metlock Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $ 15,852.19 Bargain purchase option price at end of lease term $ 5,000 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $ 50,000 Fair value of asset at May 1, 2020 $ 68,000 Lessor's implicit rate 11 % Lessee's incremental borrowing rate 11 % The collectibility of the lease payments by Ivanhoe is probable. Discuss the nature of this lease to Metlock. The nature of this lease to Metlock is a lease. operating sales-type finance e Textbook and Media List of Accounts Discuss the nature of this lease to Ivanhoe. The nature of this lease to Ivanhoe is a lease. Prepare a lease amortization schedule for Metlock for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) METLOCK COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus BPO Interest on Liability Reduction of Lease Liability Date Lease Liat 5/1/20 $ $ $ $ $ 5/1/20 5/1/21 5/1/22 5/1/23 5/1/24 4/30/25 Annual Lease Payment Plus BPO Interest on Liability Reduction of Lease Liability Lease Liability $ $ $ $ $ $ $ Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Metlock's annual accounting period ends on December 31. Reversing entries are used by Metlock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record the first lease payment) (To record interest expense) (To record amortization of the right-of-use asset) (To record interest expense) (To record amortization of the right-of-use asset) Toutbooland Media