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Mostert Ltd leased a Scania heavy truck for the transportation of rugby equipment between venues in Europe. The lease agreement contained the following provisions. 4

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Mostert Ltd leased a Scania heavy truck for the transportation of rugby equipment between venues in Europe. The lease agreement contained the following provisions. 4 years Lease term Rental payments made semi-annually in advance (commencing 1 Jan 2020 and payable 30/06 and 31/12 thereafter) $56,000 10% pa Implicit interest rate Or 4.881% semi annual At the end of the lease term, the truck which has an economic life of 10 years is returned to the lessor, de Jaager Truck Finance Ltd. The rental payments include an amount of $6,000 to cover the cost of insurance arranged and paid for by de Jaager Truck Finance Ltd. Mostert incurred legal expenses in the preparation of the lease documentation of $10,000. Required Prepare the journal entries for Mostert Ltd on 1. 1 Jan 2020. 2.30 June 2020

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