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Write an analysis of the following information:

Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Coco Inc. describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per CSU-Global Guide to Writing and APA and have proper citations, if applicable.

Assume that the following facts pertain to a non-cancelable lease agreement between Coco Inc. and Bubs, Corp, a Lessee.

The lessee assumes responsibility for all executory costs, which are expected to amount to $2,000 per year. The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line depreciation method for all equipment.

Using the spreadsheet, Lease Amort Schedule found in the link below, prepare an amortization schedule that would be suitable for the lessee for the lease term.

Using the spreadsheet Journal Entries, prepare the journal entries for the lessee for 2017 and 2018 to record the lease agreement and all expenses related to the lease. Assume the Lessees annual accounting period ends on December 31 and that reversing entries are used when appropriate.

Inception Date	January 1, 2017
Residual Value of Equipment at End of Lease Term, Unguaranteed	$50,000
Lease Term	6 years
Economic Life of Leased Equipment	8 years
Fair Value of Asset at January 1, 2017	$400,000
Lessor's Implicit Rate	12%
Lessee's Incremental Borrowing Rate	10%
Annual Executory Costs	$2,000
Amount to be Recovered (Fair Value)	$400,000
Present Value of Annuity Factor @ 10% n-6 years	4.79
Lease Payment at the Beginning of Each Year	$83,494
Right-of-Use Asset & Lease Liability	$400,000
Fair Value	$400,000
Lease Term	6 years
Estimated Useful Life	8 years
Percentage	75%
Jan 1, 17	Lease Equipment				$400,000.00
	Lease Payable					$ 400,000.00
To record lease
Jan 1, 17	Lease Payable				$ 81,365.00
	Cash					$ 81,365.00
To record lease payment
Jan 1, 17	Prepaid Operating Expense				$ 2,000.00
	Cash					$ 2,000.00
To record payment of executory costs
Dec 31, 17	Depreciation Expense				$ 58,333.00
	Accumulated Depreciation					$ 58,333.00
To record depreciation
Dec 31, 17	Operating Expense				$ 2,000.00
	Prepaid Operating Expense					$ 2,000.00
To record expenses paid for 2017
Dec 31, 18	Interest Expense				$ 38,236.00
	Lease Payable				$ 43,129.00
	Prepaid Operating Expenses				$ 2,000.00
	Cash					$ 83,365.00
To record interest expense and executory cost payments

				Bob Evans Farms - Lease Amortization Schedule
Date		Lease Payment		Interest Expense (12%)		Reduction of Lease Liability		Balance of Lease Liability
January 1 2017								$ 400,000
January 1 2017		$ 81,365				$ 81,365		$ 318,635
January 1 2018		$ 81,365		$ 38,236		$ 43,129		$ 275,506
January 1 2019		$ 81,365		$ 33,061		$ 48,304		$ 227,202
January 1 2020		$ 81,365		$ 27,264		$ 54,101		$ 173,101
January 1 2021		$ 81,365		$ 20,772		$ 60,593		$ 112,508
January 1 2022		$ 81,365		$ 13,501		$ 67,864		$ 44,644
January 1 2023		$ 50,000		$ 5,356		$ 44,644		$ 0
December 31 2023		$ 538,190		$ 138,190		$ 400,000