Sharke Inc. was incorporated in 2017 to operate as a computer software service firm with an accounting fiscal year ending July 31. Sharke's primary product is an on-line inventory-control system; its customers pay a fixed fee plus usage charges for using the system.
On August 1, 2018, Sharke leased a large computer system from the manufacturer. The lease terms are shown below:
	Annual lease payment			$ 62,700.00	paid at the beginning of the year
	Date of first payment			Aug. 1, 2018
	Lease term			5	years from date of first payment
	Implied interest rate in the contract			8%
	Depreciation method			Straight-line
	Residual value at the end of the lease			$ 3,500.00	guaranteed by Sharke
Required:
1.	Prepare an amortization schedule for this lease agreement
2.	Prepare, in general journal form, all entries Sharke should make in its accounting records for the first two fiscal years relating to this lease
	This is a financial lease