b) Newcastle plc leased a truck from a truck dealer, Warrington plc. Warrington plc acquired the truck at a cost of 320,000. Newcastle plc plans to keep the truck after the lease but has not made any commitment to the lessor to purchase it. The terms of the lease are as follows: Date of entering lease: 1 July 2017 Duration of lease: 4 years Life of leased asset: five years, after which it will have no residual value. Lease payment: 100,000 at the end of each year (e.g. 30 June 2018, 2019...). Interest rate implicit in the lease: 10 percent Unguaranteed residual value: 50,000 Fair value of truck at inception of the lease 351,140 Prepare the journal entries to account for the lease transaction in the books of the lessor, Warrington plc, at 1 July 2017 and 30 June 2018. (5 marks) Prepare the journal entries to account for the lease transaction in the books of the lessee, Newcastle plc, at 1 July 2017 and 30 June 2018. (5 marks) b) Newcastle plc leased a truck from a truck dealer, Warrington plc. Warrington plc acquired the truck at a cost of 320,000. Newcastle plc plans to keep the truck after the lease but has not made any commitment to the lessor to purchase it. The terms of the lease are as follows: Date of entering lease: 1 July 2017 Duration of lease: 4 years Life of leased asset: five years, after which it will have no residual value. Lease payment: 100,000 at the end of each year (e.g. 30 June 2018, 2019...). Interest rate implicit in the lease: 10 percent Unguaranteed residual value: 50,000 Fair value of truck at inception of the lease 351,140 Prepare the journal entries to account for the lease transaction in the books of the lessor, Warrington plc, at 1 July 2017 and 30 June 2018. (5 marks) Prepare the journal entries to account for the lease transaction in the books of the lessee, Newcastle plc, at 1 July 2017 and 30 June 2018