The question start on the left side and ends with the journal entries on the right

* Question 9 Sarasota Incorporated leases a piece of equipment to Metlock Corporation on January 1, 2020. The lease agreement called for annual rental payments of $5,441 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $26,400, a book value of $21,400, and both parties expect a residual value of $8,100 at the end of the lease term, though this amount is not guaranteed. Sarasota set the lease payments with the intent of earning a 6% return, and Metlock is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. Screen Shot 2020- (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Determine the nature of the lease to both Sarasota and Metlock. Prepare the journal entries for Metlock for 2020 and 2021. (Credit account tities are automatically indented wh the problem.) The lease is a/an Date Debit Account Titles and Explanation Credit lease to Sarasota. The lease is a/an lease to Metlock. Prepare the lease amortization schedule(s) for Metlock for all 4 years of the lease. (Round answers to o decimal places, e.g. 5,275.) (To record the lease) (To record lease payment) METLOCK CORPORATION Lease Amortization Schedule Annuity-Due Basis Reduction of Interest on Liability Lease Liability $ Date Annual Payment Lease Liability 1/1/20 1/1/20 1/1/21 1/1/22 1/1/23 Suppose Metlock incurs initial direct costs of $700 related to the lease. Prepare the journal entries for 2020. (Credit Record journal entries in the order presented in the problem.) Date Debit Account Titles and Explanation Credit Lease Expense Schedule Interest on Amortization of Lease Liability ROU Asset Lease Expense (Straight-Line) Carrying Value of ROU Asset Date 1/1/20 $ 12/31/20 (To record the lease) 12/31/21 12/31/22 (To record lease payment) 12/31/23 Prepare the journal entries for Metlock for 2020 and 2021. (Credit account titles are automatically indented when the amount is e the problem.)