Fast Ferries Ltd leased a boat from a boat dealer, Sydney Boats Ltd. Sydney Boats Ltd acquired the boat at a cost of $172,000.The boat will be painted with Fast Ferries logo and advertising and the cost of repainting the boat to make it suitable for another owner four years later is estimated to be $32,000. Fast Ferries Ltd plans to keep the boat 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 2023.

Duration of lease: 4 years.

Life of leased asset: 5 years, after which it will have no residual value.

Lease payments: $92,000 at the end of each year.

The interest rate implicit in the lease: 10 per cent.

Unguaranteed residual: $42,000.

The fair value of the boat at the inception of the lease: $320,317.

REQUIRED: Prepare the journal entries to account for the lease transaction in the books of the lessor, Sydney Boats Ltd, at 1 July 2023 and 30 June 2024.