X Ltd has entered into an agreement to lease a truck to Y Ltd. The lease agreement details are as follows:

Commencement date	1 July 2019
Annual lease payment, payable 30 June each year commencing 30 June 2020	$24,000
Fair value of the truck at 1 July 2019	$97,552
Estimated economic life of the truck	8 years
Estimated residual value of the truck at the end of its economic life	$4,000
Residual value at the end of the lease term, of which 50% is guaranteed by Y Ltd	$12,000
Length of lease	5 years
Interest rate implicit in the lease	9%

The lease is cancellable, but a penalty equal to 50% of the total lease payments is payable on cancellation. Y Ltd does not intend to buy the truck at the end of the lease term. X Ltd incurred $3,600 to negotiate and execute the lease agreement. X Ltd purchased the truck for $97,552 just before the inception of the lease.

Note: PVIFA 9% 5 years = 3.8897; PVIF 9% 5 years =0.6499

Required:

1. Prepare a schedule of lease payments for Y Ltd.
2. Prepare journal entries to record the lease transactions for the year ended 30 June 2020 in the records of Y Ltd.
3. State how lessor should classify the lease. Give reasons for your answer.
4. Prepare a schedule of lease receipts for X Ltd.

Prepare journal entries to record the lease transactions for the year ended 30 June 2020 in the records of X Ltd.