On 1 July 2016, Excavators Ltd signed a contract to lease equipment for 3 years from Leasing Experts Ltd at an annual rental of $101,000 with the first payment payable immediately The useful life of the equipment is 4 years. Excavators Ltd intends to return the equipment at the end of the lease tem and has not negotiated an arrangement to buy out the equipment at the end of the lease The equipment could have been purchased by Excavators Ltd from a well known supplier for $320,000. Excavators Ltd guarantees a residual of $50,000 Included in the annual rental is a $5000 flat fee for executory costs. Leasing Experts undertakes to pay all associated operating costs during the lease except fuel and oil. That means that Leasing Experts assumes responsibility for tyres batteries, regular maintenance, miscellaneous services, registration and comprehensive insurance. Leasing Experts makes the following outlays for these costs during the lease, negotiating the best it can with its suppliers: FY2017:$4700 FY2018: $5400 FY2019: $5100 On day 1 of the lease, Leasing Experts has established that the fair value of the equipment at end of lease will be $100,000. It is determined that the lease is a Finance Lease. The rate of interest implicit in the lease is 10% and the end of the reporting penod is June 30 for both companies. Both companies use straight line depreciation for their depreciable PPE Required i) Prepare a schedule showing the annual lease receipts and interest (lease amortization schedule) from the point of view of Leasing Experts Ltd and advise how you established the dollar value for the Lease Receivable i) Show general joumal entries to record the lease transaction for the first two years only in the books of Leasing Experts Ltd. There is no need to record the entry Leasing Experts would have made whenever they acquired the equipment in the first instance ili) Prepare a schedule showing the annual lease payments and interest (lease amortization schedule) from the point of view of Excavators Ltd and advise how you establi shed the dollar value for the Lease Liability. i) Show general joumal entries to record the lease transaction for te tat two years only in the books of Excavators Ltd. On 1 July 2016, Excavators Ltd signed a contract to lease equipment for 3 years from Leasing Experts Ltd at an annual rental of $101,000 with the first payment payable immediately The useful life of the equipment is 4 years. Excavators Ltd intends to return the equipment at the end of the lease tem and has not negotiated an arrangement to buy out the equipment at the end of the lease The equipment could have been purchased by Excavators Ltd from a well known supplier for $320,000. Excavators Ltd guarantees a residual of $50,000 Included in the annual rental is a $5000 flat fee for executory costs. Leasing Experts undertakes to pay all associated operating costs during the lease except fuel and oil. That means that Leasing Experts assumes responsibility for tyres batteries, regular maintenance, miscellaneous services, registration and comprehensive insurance. Leasing Experts makes the following outlays for these costs during the lease, negotiating the best it can with its suppliers: FY2017:$4700 FY2018: $5400 FY2019: $5100 On day 1 of the lease, Leasing Experts has established that the fair value of the equipment at end of lease will be $100,000. It is determined that the lease is a Finance Lease. The rate of interest implicit in the lease is 10% and the end of the reporting penod is June 30 for both companies. Both companies use straight line depreciation for their depreciable PPE Required i) Prepare a schedule showing the annual lease receipts and interest (lease amortization schedule) from the point of view of Leasing Experts Ltd and advise how you established the dollar value for the Lease Receivable i) Show general joumal entries to record the lease transaction for the first two years only in the books of Leasing Experts Ltd. There is no need to record the entry Leasing Experts would have made whenever they acquired the equipment in the first instance ili) Prepare a schedule showing the annual lease payments and interest (lease amortization schedule) from the point of view of Excavators Ltd and advise how you establi shed the dollar value for the Lease Liability. i) Show general joumal entries to record the lease transaction for te tat two years only in the books of Excavators Ltd