Interest Rate to calculate PV payment -8%

Puru's management has committed to trialling just-in-time manufacturing at one of its Australian companies with the objective to eliminate waste in its supply chain and reduce the quantity of materials it stores as inventory. As a result, Puru has a warehouse that is currently unused, and management has decided to lease the warehouse. On 1 January 2023, Puru entered a lease arrangement with Wadhurst Limited (Wadhurst) for use of the warehouse for a three-year period. Additional information - Lease payments of $360,000 per annum are payable by Wadhurst in arrears on 31 December each year. - Lease payments will increase by 8% each year after the first payment on 31 December 2023. - The lease is non-cancellable and there is no purchase option in the lease arrangement. - Puru incurred initial direct costs in negotiating the lease of \$12,000. These costs were paid on 1 January 2023. - The warehouse was acquired for $3,600,000 on 1 January 2021. Puru depreciates the warehouse on a straightline basis over its useful life of 15 years. - Wadhurst paid the first lease payment on 31 December 2023. Task - Prepare the journal entries for the year ended 31 December 2023