Lease $[22$ marks$]$ On August $1,2023,$ Green Co$.$ leased a tree$-$cutting machine to Leaves Co$.$ under an $8-$year lease. Both companies use IFRS, have December $31$ year$-$end dates, and use the straight$-$line method for depreciation. Details on the capital lease follow:

The annual lease payment of $$57,000$ includes $$1,477$ for insurance and is due every August $1,$ beginning August $1,2023.$

At the end of the lease term, the machine's residual value is expected to be $$60,000$ and Leaves Co$.$ has the option to buy it for $$10,000.$

Green Co$.\text{'}$s implicit interest rate is $8\%$ per year $($known by Leaves Co$.)$ and Leaves Co$.\text{'}$s incremental borrowing rate is $10\%$ per year.

Green Co$.$ paid $$200,000$ to manufacture the machine.

The machine has an estimated economic life of $12$ years.

PART A $($For both Parts A and B$,$ use the general journal sheet provided in the response area$).$

Required:

Prepare the journal entries for Leaves Co$.,$ the lessee, from August $1,2023$ to August $1,2024$

PART B

Prepare the journal entries for Green Co$.,$ the lessor, from August $1,2023$ to August $1,2024$