Accounting by lessee and lessor   LO3, 6, 7 Indiana Ltd decided to lease from Jones Ltd a car that had a fair value at 30 June 2019 of $38 960. The lease agreement contained the following provisions. Lease term 3 years Annual rental payments (commencing 30/6/19) $11 200 Guaranteed residual value (expected fair value at end of lease term) $12 000 The expected useful life of the car is 5 years. At the end of the 3‐year lease term, the car was returned to Jones Ltd, which sold it for $10 000. The annual rental payments include an amount of $1200 to cover the cost of maintenance and insurance arranged and paid for by Jones Ltd. Required 1. Prepare the journal entries for Indiana Ltd from 30 June 2019 to 30 June 2022. 2. Assuming that the lease is a finance lease from the perspective of Jones Ltd, prepare the journal entries for Jones Ltd from 30 June 2019 to 30 June 2022. 3. Assuming that the lease is an operating lease from the perspective of Jones Ltd, prepare the journal entries for Jones Ltd from 30 June 2019 to 30 June 2022.