Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Ivanhoe Leasing Company and Metlock Company, a lessee. Commencement date May 1, 2025 Annual lease payment due at the beginning of each year, beginning with May 1, 2025 $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, 2025 $68,000.07 11 % Lessor's implicit rate 11 % Lessee's incremental borrowing rate The collectibility of the lease payments by Ivanhoe is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Discuss the nature of this lease to Metlock. The nature of this lease to Metlock is a lease. 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 Interest on Hability Reduction of Lease Liability Question 1 of 3 < < E! 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 2025 and 2026. Metlock's annual accounting period ends on December 31. Reversing entries are used by Metlock. (List all debit entries before credit entries. 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation (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) Debit Credit