Determined Ltd leased equipment from Lazy Ltd on 1 July 2021. The equipment is in the records of Lazy Ltd at its fair value of $354,324 on 1 July 2021. Lazy Ltd incurred $4,560 in costs to prepare and execute the lease document.

The lease agreement contained the following details:

Lease term	4 years
Economic life of the equipment	5 years
Annual rental payments, in advance (commencing 01/07/21)	$92,000
Residual value of the equipment at the end of the lease term	$60,000
Residual value of the equipment guaranteed by Determined Ltd	$40,000
Interest rate implicit in the lease	8%
PV of $1 in 4 years at 8%	0.7350
PV of $1 annuity at 8% with 3 payments	2.5771
PV of $1 annuity at 8% with 4 payments	3.3121

The annual payments of $92,000 include $4,000 to reimburse Lazy Ltd for maintenance and insurance costs that will need to be paid by Lazy Ltd.

Determined Ltd incurred $3,316 in costs to negotiate the lease agreement. The equipment will be returned to Lazy Ltd at the end of the lease term. Determined Ltd and Lazy Ltd have a reporting period ending 30 June.

Required:

1.     Prepare the necessary journal entries for the lease arrangement at 30 June 2022 in the records of Determined Ltd. (13 marks)

2.     Calculate the balance for the lease receivable that Lazy Ltd should report in the Statement of Financial Position on 30 June 2022. (2 marks)

This is all the information i have been given