QUESTION SIX (14 MARKS) Part A (8 Marks) Selman Pty Ltd borrowed $200,000 from HSBC Bank on 1st July 2018 by signing a $200,000, 8 per cent, two-year note payable. Annual interest is paid of 30th Ju Selman has a financial year end of 31st December. Required: i) Prepare the General Journal entry to record the issue of the note on 1st July 2018. Prepare the General Journal entry for the accrued interest on 31st December 2018. iii) Prepare the General Journal entry for the payment of interest on 30 June 2019, assuming a reversing entry was not made on 1st January 2019. iv) How would Selman Pty Ltd report the note payable on its 31st December 2018, and 2019 balance sheets? (4 x 2 = 8 Marks) Part B (6 Marks) Jona Ltd needed additional machinery for the business and decided to lease the machinery. Jona Ltd entered a ten-month operating lease with monthly payments of $10,000. Required: i) Prepare the General Journal entry to record the first lease payment. What financial reporting advantages are there for Jona of an operating lease compared to a finance lease? iii) Why might Jona have decided to lease the machinery rather than buying (3 X 2 = 6 Marks) it