Assume lease option A and enter into an agreement on 1/1/18 and weapons returned on 12/31/2028.

Prepare a lease amortization schedule describing the pattern of payments and interest over the lease term for both lessee and lesser.

(Note: You must use only Excel to prepare and present all parts of this table. Do not use a hand-held calculator, and do not use the compound interest tables to solve any part of this problem.)

Prepare the appropriate entries for both Lessee and Lesser on 1/1/18. Numbers in journal entries should be linked to the table prepared in number 3 above or computed using Excel formulas.

Prepare the appropriate entries for both Lessee and Lesser through 1/1/21. Numbers in journal entries should be linked to the table prepared in number 3 above or computed using Excel formulas.

Prepare the appropriate entries for both Lessee and Lesser on 12/31/2028. Assume the weapons returned have a residual value of $500.

	A
Fair value of weapons to be leased	$365,760
Book value of weapons to be leased	$365,760
Desired Profit on Lease Initiation	$0
Lease Term	11 years
Useful Life of leased assets	13 years
Desired rate of return	10%
Residual Value (guaranteed)	$24,350