10.10 Lease schedules and accounting by lessee and lessor ** LO2, 6 On 1 July 2023, Hermione Ltd leased a crane from Grainger Ltd. The crane cost Grainger Ltd $120 307, considered to be its fair value on that same day. The finance lease agreement contained the following provisions. 1 July 2023 The lease term is for 3 years, starting on The lease is cancellable, but only with the permission from the lessor. Annual lease payment, payable on 30 June each year Estimated useful life of crane Estimated residual value of crane at end of lease term Residual value guarantee by Hermione Ltd Interest rate implicit in the lease $39 000 4 years $22 000 $16 000 7% Required 1. Prepare the lease schedules for Hermione Ltd and Grainger Ltd. 2. Prepare the journal entries in the records of Hermione Ltd for the year ended 30 June 2024