PLEASE ANSWER I WILL RATE VERY WELL, THANK YOU

John Keeley begins operating his Black Hole Bar and Grill on 1/1/19 with an equity investment of $100,000. Keeley assumes that he will earn $77,000 in cash revenues and incur cash operating expenses of 36.00% of revenues each year. The corporate tax rate is assumed to be 21.00%.

Also on 1/1/19, Keeley leases Equipment to be used in his business. The term of the lease is for 5.00 years and is not cancellable. The present value of the Equipment is $37,500. The economic life of the Equipment is assumed to be 5.00 years with Guaranteed Residual Value $5,625; Expected Residual Value $1,125 and Actual Residual Value $5,625. The company uses straight line depreciation for financial reporting purposes and for tax purposes. Furthermore assume that Keeley knows that the lease company's cost of funds is 6.50%.

1) Create an amortization table for this lease (be careful).

2) How should Keeley Account for this lease (Perform Lease Classification Tests)?

3) Provide ALL journal entries and ALL T-accounts for this transaction over the next 5 years.

4) Based on the information in the problem, create pro-forma financial statements (I/S, SRE, B/S and SCF) for John Keeley's Black Hole Bar and Grill for the next 5 years.