Using the following information, prepare the general journal entries necessary to record a lease in the books of the manufacturer or dealer lessor for the period 1 July 2019 to 1 July 2020, in accordance with the provisions of AASB 16. The rate of interest implicit in the lease is 10%. 

 

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Lessor's canying amount of the machine at 1 July 2019 $14000 Usual selling price of this machine at 1 July 2019 (fairvalue) $18853 Lease term 5 years Useful life of asset 6 years Lessee guaranteed full residual value at end of lease term $3 500 Annual rental payments, commenchg 1 July 2019 $4000 The lease is non-cancellable Lessor's canying amount of the machine at 1 July 2019 $14000 Usual selling price of this machine at 1 July 2019 (fairvalue) $18853 Lease term 5 years Useful life of asset 6 years Lessee guaranteed full residual value at end of lease term $3 500 Annual rental payments, commenchg 1 July 2019 $4000 The lease is non-cancellable

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