anufacturer lessor (Part A only) 7 2017 , Hot Ltd leased a photocopier from Mail Ltd , a company that manufactures and leases copiers . The photocopier had cost Mail Ltd $30 000 to make but had a fair 1 July 2017 of $35 080 . The lease agreement contained the following provisions erm 3 years payment , payable e in advance on 1 July each year $ 14 500 life of the copier 4 years residual value at the end of the lease term when the copier is returned $3 000 Ltd value guaranteed by Hot Ltd $1 500 rate implicit in the lease 10% e is cancellable provided another lease is immediately entered into ual payment included an amount of $2500 p.a . to reimburse Mail Ltd for the cost of nd toner supplied to Hot Ltd . Mail Ltd's solicitor prepared the lease agreement for a 1365 . June 2020 , at the end of the lease term , Hot Ltd returned the copier to Mail Ltd , which copier for $3000 . Classify the lease for both the lessor and the lessee . Justify your answer Prepare : 1. for the lessee : the lease payment schedule and the journal entries for the year ended 30 June 2020 only 2. for the lessor : the lease receipts schedule and the journal entries for the year ended 30 June 2018 only