Parramatta Flying Cars Ltd leased a flying car from an aircraft dealer, Sydney Aircraft Ltd. Sydney Aircraft Ltd acquired the flying car at a cost of $172,000.The flying car will be painted with Parramatta Flying Cars Ltd's logo and advertising and the cost of repainting the flying car to make it suitable for another owner four years later is estimated to be $32,000. Parramatta Flying Cars Ltd plans to keep the flying car after the lease but has not made any commitment to the lessor to purchase it. The terms of the lease are as follows:

	Date of entering lease: 1 July 2023.
	Duration of lease: 4 years.
	Life of leased asset: 5 years, after which it will have no residual value.
	Lease payments: $92,000 at the end of each year.
	The interest rate implicit in the lease: 10 per cent.
	Unguaranteed residual: $42,000.
	The fair value of the flying car at the inception of the lease: $320,317.

REQUIRED:

On 30 June 2027, Parramatta Flying Cars Ltd pays the residual of $42,000 and purchased the flying car. record all journal entries in the books of Parramatta Flying Cars Ltd for 30 June 2027 in relation to the termination of the lease and the purchase of the flying car.

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