New Town Hotel Ltd has entered into an agreement to lease three vehicles from Harbour Motors Ltd. The terms of the contract include: Commencement of lease 1 January 20*1 Purchase cost of the vehicles 5834.000 Term of lease 3 years Annual lease payment (first payment due 1 January 20*1 and 1 January thereafter) $250.000 Residual value, all of which is guaranteed by New Town $400.000 Harbour Motors Ltd hasn't incurred any initial direct cost for the lease. The interest rate implicit in the lease is known by New Town Hotel Ltd. Required: As the accountant for New Town Hotel Ltd, prepare journal entries that would cover the full term of the lease. Also produce a lease obligation reduction schedule. The end of the reporting period is 31 December each year