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.

Required

Record the necessary journal entries for Foley on the following dates

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

The answered provided shows:

			0.1
2017	$83,397.93	20000		20000	$63,397.93
2018	$63,397.93	20000	6339.792985	13660.20702	$49,737.72
2019	$49,737.72	20000	4973.772283	15026.22772	$34,711.50
2020	$34,711.50	20000	3471.149512	16528.85049	$18,182.64
2021	$18,182.64	20000	1818.264463	18181.73554	$0.91
2022	$0.91	1	0.090909091	0.909090909	-$0.00

Can someone walk through how these numbers came about or were calculated? I have only been given this table and no details as to what the numbers mean