plz solve Q1 and Q2 in good hand writing
. Due to rapid increase in online sales, Parramatta Deliveries Lid leased a rucktom a vux. On Trucks Lid. City Trucks acquired the truck at a cost of $161.000 The tuck will be painted w Parramatta Deliveries Lid's logo and advertising and the cost of repainting the rack to make it stable for another owner four years later is estimated to be $21.000. Parramatta Deliveries in plans to ke the truck after the lease but has not made any commitment to the lessor to purchase. The mo the lease are as follows: Date of entering lease: 1 July 2019. Duration of lease: 4 years Life of leased asset: 5 years, after which it will have no residual value Lease payments: $81,000 at the end of each year Interest rate implicit in the lease: 10 per cent Unguaranteed residual: $31.000. Fair value of truck at inception of the lease: $277.935. The equipment is to be depreciated on a straight-line basis . . The equips REQUIRED 1. Prove that the interest rate implicit in the lease is 10 per cent and calculate the present value U the minimum lease payments. (2 marks) 2. Prepare the journal entries to account for the lease transaction in the books of the lessor, City Trucks Ltd, at 1 July 2019 and 30 June 2020. Show your calculations to determine interest expenses, the reduction of principal in each year and present value of the lease lability (6 marks) 3. Prepare the portion of the statement of financial position (balance sheet) for Parramatta Deliveries Ltd relating to the leased asset and lease liability for the years ending 30 June 2020 and 30 June 2021 (as comparative figures). (2 marks) 4. Prepare the journal entries to account for the lease transaction in the books of the lessee, Parramatta Deliveries Ltd, at 1 July 2019 and 30 June 2020 (6 marks) 5. On 30 June 2023 Deliveries Lid pays the residual of $31,000 and purchases the truck. Prepare all journal entries in the books of Parramatta Deliveries Lid for 30 June 2023 in relation to the termination of the lease and the purchase of the truck. (9 marks) cok Pro . Due to rapid increase in online sales, Parramatta Deliveries Lid leased a rucktom a vux. On Trucks Lid. City Trucks acquired the truck at a cost of $161.000 The tuck will be painted w Parramatta Deliveries Lid's logo and advertising and the cost of repainting the rack to make it stable for another owner four years later is estimated to be $21.000. Parramatta Deliveries in plans to ke the truck after the lease but has not made any commitment to the lessor to purchase. The mo the lease are as follows: Date of entering lease: 1 July 2019. Duration of lease: 4 years Life of leased asset: 5 years, after which it will have no residual value Lease payments: $81,000 at the end of each year Interest rate implicit in the lease: 10 per cent Unguaranteed residual: $31.000. Fair value of truck at inception of the lease: $277.935. The equipment is to be depreciated on a straight-line basis . . The equips REQUIRED 1. Prove that the interest rate implicit in the lease is 10 per cent and calculate the present value U the minimum lease payments. (2 marks) 2. Prepare the journal entries to account for the lease transaction in the books of the lessor, City Trucks Ltd, at 1 July 2019 and 30 June 2020. Show your calculations to determine interest expenses, the reduction of principal in each year and present value of the lease lability (6 marks) 3. Prepare the portion of the statement of financial position (balance sheet) for Parramatta Deliveries Ltd relating to the leased asset and lease liability for the years ending 30 June 2020 and 30 June 2021 (as comparative figures). (2 marks) 4. Prepare the journal entries to account for the lease transaction in the books of the lessee, Parramatta Deliveries Ltd, at 1 July 2019 and 30 June 2020 (6 marks) 5. On 30 June 2023 Deliveries Lid pays the residual of $31,000 and purchases the truck. Prepare all journal entries in the books of Parramatta Deliveries Lid for 30 June 2023 in relation to the termination of the lease and the purchase of the truck. (9 marks) cok Pro
