AirCar Ltd leased a flying car from Sydney Lessor Ltd. Sydney Lessor has no material initial direct costs. AirCar Ltd does not plan to acquire the flying car at the end of the lease because it expects that, by then, it will need a larger flying car. The terms of the lease are as follows: Date of entering lease: 1 July 2023. Duration of lease: 4 years. Life of leased asset: 5 years. Lease payments: $92,000 at the beginning of each year. First lease payment: 1 July 2023. Lease expires: 1 July 2027. Interest rate implicit in the lease: 8 per cent. Guaranteed residual: $74,000.

Required:

Prepare the journal entries to account for the lease in the books of AirCar Ltd at 1 July 2023, 30 June 2024 and 1 July 2024.

Note: Use the following format for your journal entries:

have recently issued similar debt instruments but without the option for conversion to ordinary shares. These instruments issued by the other entities offer interest at a rate of 6 per cent. On 1 November 2022, Smart Ltd issued 11,400 convertible notes with the following features: Required: 1. Prepare the journal entry to record the issue of the convertible notes (2 Mark) 2. Describe the effect, if any, of the issue of the convertible notes on each of the three components of the statement of financial position, that is, assets, liabilities and equity. (1 Mark). Note: Round your PV factor to 4 decimal places. Enter your answers in millions of dollars (e.g., 1 million as 1,000,000). Round all other intermediate calculations and final answers to whole numbers. Use the following format for your journal entries