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Metlock Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone...

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Metlock Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $111,900 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $44,900 payable each December 31, beginning December 31, 2019. An interest rate of 8% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Metlock's December 31, 2019, 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 decima places e.g. 5,275.) Click here to view factor tables. Date Account Titles and Explanation Debit Credit December 1, 2019 (To record the lease) december 1, 2019 (To record receipt of lease payment)

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