O WORDS PONAD WYTY QUESTION 3 20 points On 1 July 2020 Getalease Ltd (lessee) agrees to lease a solar backup generator from Givealease Ltd (lesson that will be used to prevent power outages at a healthcare facility. The lease agreement is for three years. During this time, Getalease will have exclusive use of the generator, if the generator is out of order due to a repairs and maintenance issue. Givealearse will be required to temporarily replace the generator with a similar one until repairs have been completed. $8.000 at the end of the led to be paid on 1 July 2021 with subsequent annual payments of $400,000 also due on 1 July of each year. The yenerator is expected to have a residual valu A payment of $400.000 is term. However, Getalease Ltd agrees to pay Givealease itd only $5,000 at the end of the lease regardless of the equipment's final value. The generator, which was purchased by Givealease on 1 July 2021 at a market price of $1,150,675, is expected to have a useful life of four years at which time the generator will be worth Givealease is expected to dispose of the generator at a cost of $500. The rate of interest implicit in the lease is 5% and the end of the reporting period is 30 June. At the end of the lease Getalease returned the generator to the lessor which was then sold for $4,000. Required: Prepare general journal entries as at 1 July 2020 to record the lease in the books of both Getalease Ltd and Givealease Ltd. Show your workings. (20 marks) For the toolbar, press ALT+F10 (PC or ALT+FN+F10 (Mac). B TU S Paragraph Arial 10pt : I % To Q v iii V 6 ve and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window