1. Calculate the interest rate implicit in these contracts. You must state any assumption you make.
2. Calculate the initial amounts your company will recognise in relation to each lease.
3. Justify your answer in (2) using the Australian Accounting Standards.
4. amortization table of each lease over their life.
5. Prepare journal entries for the commencement date and for the next 3 lease payments of each lease.
6. One of your colleagues suggests that it is normal to make a table which shows changes in the make good provision over the life of the leased asset, and wants you to prepare one. give a response for your colleague.
7. Based on the previous table, prepare relevant journal entries for the first 4 years.
8. Assume that Larange had to pay $585,000 to restore the 6^th Floor and $430,000 to restore the 7^th Floor to the condition demanded by the landlord. Prepare the relevant journal entries in the books of the landlord.