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	$13,000
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.

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. 3,276.65 becomes 3,277. Make sure that the total of Liability reduction column in Lease receipts schedule equals the initial liability. This requires rounding the final interest expense figure.)

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