Please answer the below question with working outs and formula:

Prepare a Lease Schedule for the Right-of-Use (ROU) Asset (being the leased premises) for Toy Planet Pty Ltd in Microsoft EXCEL

The following information is relevant for you to calculate the "right-of-use" asset and lease liability as per AASB 16 Leases:

• First monthly lease payment (made in advance) 1 August 2022
• Monthly lease payments for first 12 months (GST-exclusive) $5,000.00
• Monthly lease payments for second 12 months (GST-exclusive) * $5,100.00
• Monthly lease payments for third 12 months (GST-exclusive) ** $5,202.00
• Total undiscounted lease payments over 3-year period $183,624.00
• Present value of the lease payments $170,783.93
• Period of the lease (3 years) 36 months
• Depreciation method straight-line
• Rent increase to take effect on 1 August each year 2.0%
• Annual discount rate to be used for each of the 36 monthly lease payments 5.00%

* calculated at $5,000 x 2.0% increase (for the period 1 August 2023 to 31 July 2024)

** calculated at $5,100 x 2.0% increase (for the period 1 August 2024 to 31 July 2025)

The first monthly lease payment of $5,000 made on 1 August 2022 was made in advance. Hence, there was no interest in respect of the first lease payment. Each of the remaining 35 lease payments are also made on the 1^st day of each month.

Note: There are 334 days from 1 August 2022 to 30 June 2023.

Please do not use EXCEL's NPV function as this gives an incorrect present value figure different to $170,783.93. Furthermore, when calculating the interest, please use the 5.00 per cent annual discount rate and divide the outstanding principal at the beginning of each month by 12 for each month in your lease schedule. In other words, do not use a daily discount rate. Instead, please use a monthly rate.

Additional Information Relating to the Lease:

• Being a new business, assume that there is no reasonable certainty at the inception of the lease (ie, 1 August 2022) that Kate and Belinda will exercise the option to extend the lease term for an additional three years at the end of the original lease, which is due to expire on 31 July 2025. Hence, for the purposes of the leased (ROU) premises under AASB 16, assume that the right-of-use asset will be depreciated over three (3) years.
• Assume that there were no initial direct costs incurred in drafting and signing the lease agreement. These costs were borne by the lessor, and not the lessee.
• Assume that there were no lease incentives received, nor any 'make good provision' (ie. no costs are estimated to be incurred at the end of the three years to restore the leased premises to its original condition).
• Even though the lease started on 1 August 2022, please date all relevant lease journal entries (including the initial right-of-use asset and lease liability) 30 June 2023.

When drafting your external financial statements, please show the "right of use asset" as a separate line on the face of the balance sheet, with appropriate note disclosures, rather than including it with the property, plant and equipment line.