Option #1: Lease 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, where applicable. Assume that the following facts pertain to a non-cancelable lease agreement between Coco Inc. and Bubs Corp, a Lessee. Inception date January 1, 2018 Residual value of equipment at end of lease term unguaranteed $100,000 Lease term 6 years Economic life of leased equipment 8 years $800,000 Fair value of asset at January 1, 2017 Lessor's implicit rate 12% Lessee's incremental borrowing rate 10% 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 uses the straight-line depreciation method for all equipment 1. Using the spreadsheet Lease Amort Schedule, prepare an amortization schedule that would be suitable for the lessee for the lease term. 2. Using the spreadsheet Journal Entries, prepare the journal entries for the lessee for 2018 and 2019 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. 3. Prepare journal entries for the lessor of the transaction. Prepare the journal entries to record transactions as required. Journal Entries- Lessee Date Transactions and Accounts Debit Credit Provide a one line explanation for the reason why the journal entry has been made. You may add as many rows as needed to prepare your journal entries. Journal Entries-Lessor Transactions and Accounts Date Debit Credit Provide a one line explanation for the reason why the journal entry has been made. You may add as many rows as needed to prepare your journal entries Journal Entries Lease Amort. Lessee Lease Amort.Lessor Lease Amortization- Lessee Effective Interest rate (Interest%X Outstanding Oustding Balance) Dates Payments Decrease in Balance Balance You may add as many rows as needed (Excel Tutorial in Module zero) Lease Amortization- Lessor Effective Interest rate (Interest%X Decrease in Oustding Balance) Outstanding Dates Receipts Balance Balance You may add as many rows as needed (Excel Tutorial in Module zero) Principal Date Initial Lease amount Carrying Amount of Lease Interest Income Amortization Straight Line Amort. Effective Interest Module Number: Name of Company Option: Student's Name Date Initial Lease Amount Principal Interest Carrying Amount of Lease Amortization Straight Line Amort. Effective Interest