Company A started at the beginning of 2019.
They entered into a lease with Jan 1st as both inception and commencement date
The Lease term is as below
- 5 yr non-cancellable
- 5% interest rate
- equal payment of $22916.51 at the end of each year
- $1,000 bargaining purchase option at the end of lease term
The useful life of this asset is 6 years with 0 residual value

Tax rate 25%, 30% and 35% each of the year

Earnings before interest, amortization and taxes for each year
2019 $123,456
2020 $234,567
2021 $345,678

Required:
a) Prepare an amortization table for the lease
b) Record all related Journal entries
c) Complete the balance sheet
d) If instead of lease, company A pays $6,000/year rental to use the same equipment
what impact would this make?

Balance Sheet
	2019	2020	2021
Asset
Current Asset
Cash	?	?	?
Accounts Receivable	120000	100000	150000
Prepaid Expenses	8000	5000	2000
Future Tax Asset	?	?	?
Long-term Asset
?
Total Assets
Liabilities
Current Liabilities
Accounts Payable	100000	80000	90000
Unearned Revenue	10000	8000	12000
Future Tax Liabilities	?	?	?
Long-term Liabilities
?
Total Liability
Shareholders' Equity
Retained Earnings	?	?	?
Common Equity	200000	200000	200000
Total Shareholders' Equity
Total Liability and Equity