Lease schedules and accounting by lessee and lessor   LO3, 7 On 1 July 2020, Harry Ltd leased a crane from Potter Ltd. The crane cost Potter Ltd $120 307, considered to be its fair value on that same day. The finance lease agreement contained the following provisions. The lease term is for 3 years, starting on 1 July 2020 The lease is cancellable, but only with the permission from the lessor. Annual lease payment, payable on 30 June each year $39 000 Estimated useful life of crane 4 years Estimated residual value of crane at end of lease term $22 000 Residual value guarantee by Harry Ltd $16 000 Interest rate implicit in the lease 7% Required 1. Prepare the lease schedules for Harry Ltd and Potter Ltd. 2. Prepare the journal entries in the records of Harry Ltd for the year ended 30 June 2021.