On 1 July 2020, Cessnock Ltd (lessee) leased a Machine from Pokolbin Ltd (lessor).

The lease agreement contained the following:

Lease term

10 years

Useful life of Machine

15 years

Annual rent payment, inadvance(commencing 1/7/2020)

Subsequent payments are due on 1 July in following years

$100,000

Residual value at end of lease term

$50,000

Residualguaranteepaidby lesseeat end of lease

$30,000

Interest rate implicit in lease

6%

Right-of-use Asseton 1 July 2020 - measured at NPV

$796,921

all journal entries on 1 July 2020 and 30 June 2021 for thelessee(Cessnock Ltd). Narrations are not required. Round your answer to zero decimal places