On 1 July 2017, Harry Ltd leased a crane from Potter Ltd. The crane cost Potter Ltd $89,027, considered to be its fair value on that same day. The finance lease agreement contained the following provisions.

The lease term is for 3 years, starting on	1 July 2017
The lease is non-cancellable
Annual lease payment, payable on 30 June each year	$29,000
Estimated useful life of crane	4 years
Estimated residual value of crane at end of lease term	$16,000
Residual value guaranteed by Harry Ltd	$12,000
Interest rate implicit in the lease	7%
The lease was classified as a finance lease by both Harry Ltd and Potter Ltd at 1 July 2017.

1.Prepare the lease schedules for both the lessee and the lessor.(Round factor values to 4 decimal places, e.g. 5,2752 and final answers to 0 decimal places, e.g. 5,275.)

Harry Ltd (lessee) Lease payments schedule
Minimum lease payments $	Interest expense $	Liability reduction $	Liability balance $
1 July 2017
30 June 2018
30 June 2019
30 June 2020

Potter Ltd (lessor) Lease receipts schedule
Minimum lease receipts $	Interest revenue $	Receivable reduction $	Receivable balance $
1 July 2017
30 June 2018
30 June 2019
30 June 2020