2009, Sydney Doctors Ltd leased a CT Scanning machine from Hi Tech Medical Imaging Ltd, a company that manufactures, retails and leases CT Scanners. The CT Scanner had cost Hi Tech Medical Imaging $130,000 to make but had a fair value on 1 July 2009 of S150,000. The lease agreement contained the following provisions: 3 years $50,000 5 years Lease term Annual payment, payable in advance on 1 July each year Economic life of the CT Scanner Estimated residual value at the end of the lease term when CT Scanner is returned to Hi Tech Medical Imaging Ltd Residual value guaranteed by Sydney Doctors Ltd Interest rate implicit in the lease Present value of minimum lease payments The lease is non-cancellable $17,603 $10,000 10% $144,288 Hi-Tech Medical Imaging Ltd's solicitor prepared the lease agreement for a fee of $1,500. At the end of the lease term on 30 June 2012, Sydney Doctors Ltd returned the CT Scanner to Hi Tech Medical Imaging Ltd, who sold the CT Scanner for S14,000. Required: 1. Prepare the lease payment schedule for Sydney Doctors Ltd 2. Prepare the journal entries of Sydney Doctors Led for the lease from 1 July 2009 to 30 June 2012 3. Explain whether the lease receipt schedule of Hi-Tech Medical Imaging Ltd will be identical to the lease payment schedule of Sydney Doctors Ltd? Why or why not? Do NOT prepare the lease receipt schedule. 2009, Sydney Doctors Ltd leased a CT Scanning machine from Hi Tech Medical Imaging Ltd, a company that manufactures, retails and leases CT Scanners. The CT Scanner had cost Hi Tech Medical Imaging $130,000 to make but had a fair value on 1 July 2009 of S150,000. The lease agreement contained the following provisions: 3 years $50,000 5 years Lease term Annual payment, payable in advance on 1 July each year Economic life of the CT Scanner Estimated residual value at the end of the lease term when CT Scanner is returned to Hi Tech Medical Imaging Ltd Residual value guaranteed by Sydney Doctors Ltd Interest rate implicit in the lease Present value of minimum lease payments The lease is non-cancellable $17,603 $10,000 10% $144,288 Hi-Tech Medical Imaging Ltd's solicitor prepared the lease agreement for a fee of $1,500. At the end of the lease term on 30 June 2012, Sydney Doctors Ltd returned the CT Scanner to Hi Tech Medical Imaging Ltd, who sold the CT Scanner for S14,000. Required: 1. Prepare the lease payment schedule for Sydney Doctors Ltd 2. Prepare the journal entries of Sydney Doctors Led for the lease from 1 July 2009 to 30 June 2012 3. Explain whether the lease receipt schedule of Hi-Tech Medical Imaging Ltd will be identical to the lease payment schedule of Sydney Doctors Ltd? Why or why not? Do NOT prepare the lease receipt schedule
