On 1 July 2016, Christchurch Ltd leased a processing plant to Wellington Ltd. The plant was purchased by Christchurch Ltd on 1 July 2016 for its fair value of $467 112. The lease agreement contained the following provisions: Lease term Economic life of the plant Annual rental payment, in arrears Residual value at the end of the lease term Residual guaranteed by the lessee Interest rate implicit in the lease The lease is cancellable only with the permission of the lessor 3 years 5 years $150 000 $90 000 $60 000 11% Welling Ltd intends to purchase the processing plant at the end of the lease term for $50 000. The lease has been classified as a finance lease. REQUIRED: 1. Prepare the journal entries to account for the contract over the lease term (Hint: First prepare the lease payments schedule). Narrations are required. LEASE PAYMENTS SCHEDULE Year Journals: DETAILS 11% Lease liability b/f Lease Interest payment Decrease in Lease lease liability liability + DEBIT CREDIT c/f [+