O WORDS POWERED BY TINY QUESTION 3 20 points Save Answer On 1 July 2020. Getabill Ltd (lessee) agrees to lease a machine from Giveabill Ltd (lessor) that will be used to produce an innovative new drug for cancer treatment. The lease agreement is for three years. During this time, Getabill will have exclusive use of the machine and plan to increase the company's production revenue by 20% year on-year. If the machine is out of order due to a repairs and maintenance issue. Giveabill will be required to temporarily replace the machine with a similar one until the leased machine has been repaired. A payment of $40,000 is agreed to be paid on 1 July 2020 with subsequent annual payments of $40,000 also due on 1 July of each year. The equipment is expected to have a residual value of $8,000 at the end of the lease term. However, Getabill Ltd agrees pay Giveabill Ltd only $5,000 at the end of the lease regardless of the equipment's final value. The machine, which was purchased by Giveabill on 1 July 2020 at a market price of $121,197, is expected to have a useful life of four years. Unfortunately, at the end of the four years the machine will be worthless and Giveabill is expected to dispose of the machine at a cost of $500. The rate of interest implicit in the lease is 5% and the end of the reporting period is 30 june. At the end of the lease term. Getabill returned the equipment to the lessor and the returned equipment was sold for $4.000. Required: Prepare general journal entries as at 1 July 2020 to record the lease in the books of both Getabill Ltd and Giveabill Ltd. Show your workings. (20 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B 1 U S Arial Paragraph 14px AQ T REC > TT x x e 1992 EXC EBB > 9. EXE V 38 E 62 ) Save All Answers Close Window Save and Submit Click Save and Submit to save and submit. Click Save All Answers to save all answers