Foley Ltd (Foley) leases a machine for make rugby headgear from the Rara Bank on 1 July 2017. Lease payments of $20,000 are required annually in advance for 5 years (payable 30 June), and a residual payment of $1 is required at the end of year 5. The implicit interest rate in the lease is 10% p.a. The machine has a useful life of 10 years with a salvage value of $10,000.

Record the necessary journal entries for Foley on the following dates

1. 1 July 2017
2. 30 June 2018
3. 30 June 2022

Can someone show how the opening balance is calculated? The answer says the opening balance is $83,397.93 but how did that come about?