Woody Ltd forms a company, to manufacture motorised roller blades. To make the roller blades, Woody Ltd needs to acquire specialised machinery from Morrison Ltd, which designs and manufactures the machinery. The equipment has an estimated economic life of seven years. Woody Ltd decides to lease the equipment from Morrison Ltd for a period of six years, by way of a non-cancellable lease. The lease commences on 1 July 2019. The lease payments are made at the end of each year and amount to $55,000 per annum. The lease payments include reimbursement of Morrison Ltd's costs for servicing the machinery at an amount of $5,000 per annum. There is a guaranteed residual at the end of the lease term of $40 000, which represents expectations of what the lessee and lessor expect the machinery to be worth at the end of the lease term. The rate of interest implicit in the lease is 8 per cent. REQUIRED: 1. Determine the amount of lease liability and lease asset for Woody Ltd. (3 marks) 2. Provide the journal entries in the books of Woody Ltd as at 1 July 2019 and 30 June 2020. (6 marks)