Hasselback Ltd enters into a finance lease with Larry Ltd on $1$ July $2017$ for an item of machinery that has a fair value at that date of $$226718.$ The lease is for a period of four years, with annual lease payments of $$62000$ due on $30$ June each year, the first payment to be made on $30$ June $2018.$ There is a bargain purchase option of $$15000$ available for Larry to exercise at the end of the lease period. The rate of interest implicit in the lease is $6\%.$ It cost Hasselback Ltd $$190000$ to manufacture the machine.

Required

What are the entries in the books of Hasselback Ltd as at $1$ July $2017$ and $30$ June $2018($round amounts to the nearest dollar$)?$

Group of answer choices

$($b$)1$ July $2017$

Dr

Lease Receivable

$$226718$

Dr

Cost of Sales

$$190000$

Cr

Inventory

$$190000$

Cr

Sales

$$226718$

$($b$)30$ June $2018$

Dr

Cash

$$62000$

Cr

Interest Revenue

$$13603$

Cr

Lease Receivable

$$48397$

$($a$)1$ July $2017$

Dr

Lease Receivable

$$226718$

Cr

Machine

$$226718$

$($a$)30$ June $2018$

Dr

Cash

$$62000$

Cr

Interest Revenue

$$13603$

Cr

Lease Receivable

$$48397$

$($d$)1$ July $2017$

Dr

Lease Receivable

$$263000$

Cr

Unearned Interest

$$36282$

Cr

Machine

$$226718$

$($d$)30$ June $2018$

Dr

Cash

$$62000$

Cr

Unearned Interest

$$9071$

Cr

Lease Receivable

$$52929$

None of the given answers.

$($c$)1$ July $2017$

Dr

Lease Receivable

$$226718$

Cr

Machine

$$190000$

Cr

Deferred Gain

$$36718$

$($c$)30$ June $2018$

Dr

Cash

$$62000$

Dr

Deferred Gain

$$9180$

Cr

Interest Revenue

$$13603$

Cr

Lease Receivable

$$57577$