Finance lease — manufacturer lessor    LO3, 7 Mission Ltd manufactures specialised moulding machinery for both sale and lease. On 1 July 2019, Mission Ltd leased a machine to Impossible Ltd, incurring $1500 in costs to prepare and execute the lease document. The machine being leased cost Mission Ltd $195 000 to make and its fair value at 1 July 2019 is considered to be $212 515. The terms of the lease agreement are as follows. Lease term commencing on 1 July 2019 5 years Annual lease payment commencing on 1 July 2020 $57 500 Estimated useful life of machine (scrap value $2500) 8 years Estimated residual value of machine at end of lease term $37 000 Residual value guarantee by Impossible Ltd $25 000 Interest rate implicit in the lease 10% The lease is classified as a finance lease by Mission Ltd. The annual lease payment includes an amount of $7500 to cover annual maintenance and insurance costs. Actual executory costs for each of the 5 years were as follows. 2019–20 $7200 2020–21 7700 2021–22 7800 2022–23 7100 2023–24 7000 Impossible Ltd may cancel the lease but will incur a penalty equivalent to 2 years’ payments if it does so. Impossible Ltd intends to lease a new machine at the end of the lease term. The end of the reporting period for both companies is 30 June. Required 1. Prepare a schedule of lease payments for Impossible Ltd. 2. Prepare the general journal entries to record the lease transactions for the year ended 30 June 2020 in the records of Impossible Ltd. 3. Prepare a schedule of lease receipts for Mission Ltd. 4. Prepare the general journal entries to record the lease transactions for the year ended 30 June 2020 in the records of Mission Ltd.