QUESTION $1$

Groen Tea $4$ Life Ltd has nequested your help in preparing their financial statements as they

are unsure of the requirements of NZ IFRS I$6$ Lease for lessees.

You are provided with the following lease details:

$($i$)$ Prepare the journal entry to initially recognise the ROU asset and lease liability, at the commencement date.

$($ii$)$ Complete the lessee's table in the space provided. Determine the total interest expense that would be

recognised in the Statement of Comprehensive Income over the five years of the lease.

$($iii$)$ The total interest expense recognised over the five years of the lease would be:

$($iv$)$ Prepare financial statements to reflect the effects of the lease for the financial years ended $31$ March $2020,$

$31$ March $2022,$ and $31$ March $2024$