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Practical Question 2 - Leases Marvel Ltd (Lessor) and DC Ltd (Lessee) entered into a lease agreement for a truck on 30 June 2019. On
Practical Question 2 - Leases Marvel Ltd (Lessor) and DC Ltd (Lessee) entered into a lease agreement for a truck on 30 June 2019. On that date, the truck had a fair value of $83,002. Details of the lease agreement are as follows: The annual rental payment includes $3,000 that is reimbursed to the lessor to do the maintenance and insurance for the truck on behalf the lessee. The lessee intends to return the truck to the lessor at the end of the lease term. The lease payment schedule for the lessee is shown below: Required: Based on the above lease payments schedule, prepare journal entries in the books of the lessee from the start of the lease until the year ended 30 June 2022. (10 Marks). Narrations are NOT required. Practical Question 2 - Leases Marvel Ltd (Lessor) and DC Ltd (Lessee) entered into a lease agreement for a truck on 30 June 2019. On that date, the truck had a fair value of $83,002. Details of the lease agreement are as follows: The annual rental payment includes $3,000 that is reimbursed to the lessor to do the maintenance and insurance for the truck on behalf the lessee. The lessee intends to return the truck to the lessor at the end of the lease term. The lease payment schedule for the lessee is shown below: Required: Based on the above lease payments schedule, prepare journal entries in the books of the lessee from the start of the lease until the year ended 30 June 2022. (10 Marks). Narrations are NOT required
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