(Solved): In the worksheet "lease amortization schedule", you will find information about a three- year leas ...

In the worksheet "lease amortization schedule", you will find information about a three- year lease initiated on Jan. 1, Year 1. This lease calls for quarterly payments of

at the beginning of each quarter, starting from Jan. 1, Year 1. The market interest rate at the time of issuance is

. Put in the correct formulas, not just the numbers. Based on the Amortization Schedule, please answer the following question. Using the formulas. Q1: what is the lessee's lease expense in Y 1 if this is an operating lease? Q2: what is the lessee's interest expense in Y 1 if this is an operating lease? Q3: what is the lessee's amortization expense related to the right-of-use assets in Y 1 if this is an operating lease? Q4: what is the lessee's amortization expense related to the right-of-use assets in Y 3 if this is an operating lease? Q5: Prepare the journal entry for the lessor on 01/01/Y1 if this is an operating lease. Q6: Prepare the journal entry for the lessor on 04/01/

2 if this is an operating lease (no need to record depreciation expense which would be recorded as an adjusting entry at fiscal period end). Q7: Prepare the journal entry for the lessor on 04/01/Y2 if this is a sales-type lease. Sensitivity Analysis: In Q8 and Q9 Solve for the Lease balance at 01/01/Y2 (after the lease payment) and lease balance at 07/01/Y3 (after the lease payment) using the following information: Q8. The quarterly lease payments is

and the effective interest rate is

Q9. The quarterly lease payments is

and the effective interest rate is

.