SC Academy Ltd has a 31 December year end.

SC Academy acquired an equipment under a finance lease agreement on 1 January 2018. Lease payments are $10,000 annually for three years, payable in arrears, the first instalment being due on 31 December 2018.

The equipment would have cost $26,000 to buy outright and the estimated economic useful life of the asset is four years with zero residual value. The rate of interest implicit in the lease is 7%

a. Complete the following amortisation schedule to determine the interest expenses and lease liability. Round all answers to the nearest dollar.

Year ending	Lease Payable Beg. Bal	Interest Expense	Lease payment	Reduction in Lease liability	Lease Payable End. Bal
	$	$	$	$	$
31 Dec 2018	(A)	(B)	(C)	(D)	(E)