et toucation You are log Question 3: (15 marks) Parta) Very briefly, explain what is a lease? (1 mark) Part b) On 30 June 2020. Dobbs Ltd entered into a 6 year finance lease for the right to use equipment. The fair value of the equipment that inception of the lease is 5150,000 and, the guaranteed residual value at the end of the lease period is $7,500. The interest rate implicit i the lease is 8% and Lease payments are made in advance on 30 June each year. An extract of the lease repayments schedule is as follows: Dobbs LTD Extract of Lease Payments Schedule Minimum loase Interest Reduction in Balance of payments expense liability Hability 30 June 2020 $ 119.980 30 June 2020 S 32.000 S 32000 87980 30 June 2021 32.000 7,038 24.952 63,018 30 June 2022 32.000 504 26,959 36.050 5 Required: Based on the lease repayment schedule, prepare the journal entries of the Dobbs Ltd to account for the finance lease from 30 June 2020 to 30 June 2022 (note, narrations are not required) (14 marks)