how should we do the lease statement schedule (included the interest rate, principle, closing balance for each payment and the motor vehicle depreciate expense at the 30 June 2019 as below information:

1.On 8 October 2018, The Flavours of Italy Unit Trust entered into a non-cancellable lease agreement to finance the acquisition of a motor vehicle (ie. a Ford Transit SWB Van) that will be used exclusively in the business. Details of the finance lease agreement are as follows:

Details of the finance lease agreement are

Fair value of van (GST-exclusive) $42,000

Present value of the minimum lease payments

(including the present value of the guaranteed residual).$42,000

Amount financed under the lease agreement$42,000

Lease term5 years

Number of monthly lease payments60

Monthly lease payments (GST-inclusive) due on the 8^th day of each month$770

The first lease payment of $770 is made in advance on 8 October 2018.

There is no interest on the first lease payment.

Thereafter, 59 monthly lease payments are due on the 8^th day of each

month. The 60^th and final lease payment is due on 8^th September 2023.

Under the lease agreement on 8^th September 2023 (being the same date

as the final $770 lease payment, the trust is also required to make

the guaranteed lease residual payment of $9,000 (GST-inclusive). The

trust intends to pay out the guaranteed lease residual in 5 years

time and take full legal possession of the van.

Total GST-inclusive lease payments (including the guaranteed residual)$55,200

Total GST-exclusive lease payments (including the guaranteed residual)$50,182

Useful/(effective) life of the van (same for accounting and taxation)8 years

Depreciation policy: the trust uses the straight line method for accounting purposes and the SBE simplified depreciation regime for small business entities for taxation purposes.

The estimated residual value of the van at the end of the eighth year $Nil

Note: There are 266 days from 8 October 2018 to 30 June 2019.

Mario has provided you with the original finance lease agreement. All of the above information is contained in the lease agreement. Unfortunately, the lease agreement does not stipulate the implicit interest rate. Hence, you will need to calculate the implicit interest rate when preparing your EXCEL lease spreadsheet.

Ignore any accrued interest between 8 June to 30 June each year.

In other words, the outstanding lease liability at 30 June 2019 is effectively the amount of the outstanding lease liability at 8 June 2019.