Boney plc is a small listed company, operating physiotherapy practices across Devon and Cornwall. Boney plc entered into a contract with Rub Limited for the lease of 100 treatment benches. Each bench is considered to be an identified underlying asset. The commencement date of the lease is 1 April 20X5 and Boney plc paid legal costs relating to setting up the lease of 2 203 on this date. The lease agreement is for a period of three years and requires total lease payments in arrear as follows: Date 31/03/X6 31/03/X7 31/03/X8 10 000 11 000 12 000 The estimated useful life of the benches is three years with residual value. Boney plc's incremental borrowing rate is 10%. The following present value (PV) table is provided: Present value of 1 in one year, discounted at 10% Present value of 1 in two years, discounted at 10% Present value of 1 in three years, discounted at 10% Present value of annuity in arrear of 1 for three years, discounted at 10% PV factor 0.9091 0.8264 0.7513 2.4868 The financial year end of Boney plc is 31 March. Part A Assume that the contract contains a lease and the IFRS 16 Leases single lease model is applied. Required: a) Prepare all the relevant journal entries in relation to the lease contract in the accounting records of Tree Tops plc for the year ended 31 March 20x6 only. (14 marks) b) Prepare an extract from the statement of financial position showing the disclosure of the right of use asset and the lease liability at 31 March 20X7 together with the comparative amounts at 31 March 20X6. (7 marks)