View Policies Current Attempt in Progress Teal Mountain Corporation manufactures drones. On December 31, 2016, it leased to Althaus Company a drone that had cost $111,400 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $41,900 payable each December 31, beginning December 31, 2016. An interest rate of 11% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Teal Mountain's December 31, 2016, journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places eg. 5,275.) Click here to view the factor table. Date December 31, Account Titles and Explanation 2016 I (To record the lease) December 31, 2016 (To record receipt of lease payment) List of Accounts Save for Later Debit Credit Attempts: 0 of 1 used Submit