The journals to record the annual finance lease payments in the books of the lessee are: Select one: a. Debit lease receivable, Debit bank Credit sales. b. Debit lease liability, Debit bank; Credit interest revenue. C. Debit interest expense, Debit lease lability; Credit bank. d. Debit bank Credit lease receivable, Credit interest revenue. According to NZ IFRS 16, how are initial direct costs to be treated for a lessee? Select one: a. There is no recommendation on initial direct lease costs. b. They are included as an additional part of the lease asset. c. They are capitalised and recorded separately from the lease asset and amortised over the shorter of th lease term or five years. d. They are immediately expensed. Adam Limited and Davies Limited enter into a finance lease agreement with the following terms lease term is 3 years estimated economic life of the leased asset is 6 years 3 x annual rental payments of s23 000 each payment is one year in arrears residual value at the end of the lease term is not guaranteed by the lessee interest rate implicit in the lease is 79% The journal entry recorded by the lessee when the payment is made at the end of the first year is