Prepare an Amortization Schedule

Lease Term $($in years$)3$

quaterly rental payments $($paid at the beginning of each quarter$)$ $$30,000$

effective interest rate $12\%$

Present value of Lease payments $?$

Based on the amortization schedule, please answer the following questions:

Q$1$: what is the lessee's lease expense in Y$1$ if this is an operating lease?

Q$2$: what is the lessee's interest expense in Y$1$ if this is an operating lease?

Q$3$: what is the lessee's amortization expense related to the right of use assets in Y$1$ if this is an operating lease?

Q$4$: what is the lessee's amortization expense related to the right of use assets in Y$3$ if this is an operating lease?

Q$5$: Prepare the journal entry for the lessor on $01/01/$Y$1$ if this is an operating lease

Q$6$: Prepare the journal entry for the lessor on $04/01/$Y$2$ if this is an operating lease$($ignore the depreciation expense$)$

Q$7$: Prepare the journa

Sensitivity Analysis

Lease balance at $01/01/$Y$1($after the lease payment$)$

lease balance at $07/01/$Y$3($after the lease payment$)$

the quaterly lease payments is $7000$ and the effective interest rate is $9\%$

the quaterly lease payments is $24000$ and the effective interest rate is $12\%$