In this simulation, you are asked to address questions related to the accounting for leases. Prepare responses to allparts.

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KWW Professlonal Simulation Accounting Time Remaining for Leases 2 hours 00 minutes Unsplit Split Horiz Spit Vertical Spreadsheet Calculator Exit Measurement Journmal Entry Resources Directions Situation Assume that the following facts pertain to a noncancelable lease agreement between Fifth-Third Leasing Company and Bob Evans Farms, a lessee. January 1, 2012 Inception date Annual lease payment due at the beginning of each year, beginning with January 1, 2012 Residual value of equipment at end of lease term, guaranteed by the lessee Lease term Economic life of leased equipment Fair value of asset at January 1, 2012 Lessor's implicit rate Lessee's incremental borrowing rate $81,365 $50,000 6 years 6 years $400,000 12% 12% The lessee assumes responsibility for all executory costs, which are expected to amount to $4,000 per year. The asset will revert to the lessor at the end of the lease term. The lessee has guaranteed the lessor a residual value of $50,000. The lessee uses the straight-line depreciation method for all equipment. Messurement Journal Entry Resources Directions Situation Use a computer spreadsheet to prepare an amortization schedule that would be suitable for the lessee for the lease term. Measurement Journal Entry Resources Directions Situation Prepare the journal entries for the lessee for 2012 and 2013 to record the lease agreement and all expenses related to the lease. Assume the lessee's annual accounting period ends on December 31 and that reversing entries are used when appropriate. (Round to the nearest dollar.)