A Limited (lessee) enters into a contract on 1 January 2021 for the lease of a machine from B Limited (lessor). The contract is for a period of five years and requires A Limited to pay lease rentals of R212 277 annually, in advance. The lease is non-cancellable and A Limited will make all decisions on how to use the machine and B Limited does not have any substitution rights. The machine has a cash cost and fair value of R900 000 on 1 January 2021. It has an estimated useful life of five years with no residual value. A Limiteds profit before tax, taking into account all of the relevant information above, is correctly calculated at R1 050 000 in 2021. The only interest incurred by A Limited relates to this lease. There are no other differences between accounting profit and taxable profit other than those evident from the information provided. A Limited satisfies the requirements to recognise deferred tax assets. The current tax rate is 28%. There are no components of other comprehensive income. The interest rate implicit in the lease is 9% per annum compounded annually. REQUIRED: Prepare the journal entries for the year ending 31 December 2021 in relation to the above lease agreement in the books of A Limited.