1. Pearl Ltd entered into an agreement on 1 July 2022 to lease a processing plant with a fair value of $569 230 to Aristotle Ltd. The terms of the lease agreement were:

Lease term	3 years
Economic life of plant	5 years
Annual rental payment, in arrears (commencing 30/6/23)	$225 000
Residual value of plant at end of lease term	$50 000
Residual value guarantee by Einstein Ltd	$20 000
Interest rate implicit in the lease	6%
The lease is cancellable, but only with the permission of the lessor.

At the end of the lease term, the plant is to be returned to Pearl Ltd. In setting up the lease agreement Pearl Ltd incurred $7350 in legal fees and stamp duty costs. The annual rental payment includes $25 000 to reimburse Pearl Ltd for maintenance costs incurred on behalf of Aristotle Ltd.

Required:

1. Prepare a lease payments schedule and the journal entries in the records of Aristotle Ltd for the year ended 30 June 2023. Show all workings.
2. Prepare a lease receipts schedule and the journal entries in the records of Pearl Ltd for the year ending 30 June 2023. Show all workings.