Prepare all necessary journal entries for Metlock for this lease through December 31, 2025. (Record...
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Prepare all necessary journal entries for Metlock for this lease through December 31, 2025. (Record journal entries in the onder presented in the problem. Credit account titles are automatically indented when amount is entered, Do not indent manually if no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. Round answers to 0 decimal places es 5.275. Ust all debit entries before credit entries) On December 31:2024, Metlock Corporation signed a 6 -vear, non-cancelable lease for a machine. The terms of the lease called for Metlock to make annual payments of $12,395 at the beginning of each year, starting December 31,2024 . The machine has an estimated useful life of 8 years and a $6,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Metlock uses the straight-fine method of depreciation for all of its plant assets. Metlock's incremental borrowing rate Is 95 , and the lessor's implicit rate is unionown. Click here to view factor tables: (a) Your answer is correct. What type of lease is this for the lessee? This is a) lease. (To record first lease payment) (To record amortization of the right-of-use asset) (fo record lease payment)
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