Giratina Plc leases an automobile with a fair value of 18,000 from Arcerus Ltd, on the following terms. 1. Non-cancelable term of 40 months. 2. Rental of 500 per month (at the beginning of each month). (The present value at 0.6% per month is 17,840.) 3. Giratina Plc guarantees a residual value of 2,000. Giratina Plc expects the probable residual value to be 1,200 at the end of the lease term. 4. Estimated economic life of the automobile is 50 months. 5. Giratina Plc's incremental borrowing rate is 7.2% a year (0.6% a month). Arcerus Ltd's implicit rate is unknown.

What is the present value of the lease payments to determine the lease liability? b, Prepare the journal entries for Giratina Plc at the date of commencement.

c, Prepare the journal entries for Giratina Plc at the end of the 1st month

d, Prepare the journal entries for Giratina Plc at the beginning of the 2nd monthImmersive Reader

e, Prepare the journal entries for Giratina Plc at the end of the 2nd month