On 1 July 2020, BPI Ltd leased a processing plant from Shelton Ltd. The plant was purchased by Shelton Ltd on 30 June 2020 for its fair value of $337,036. The lease agreement contained the following provisions. 5 years The lease term is for 3 years, starting on 1 July 2020 Annual lease payment, payable on 30 June each year $120,000 Estimated useful life of plant Estimated residual value of plant at end of lease term $35,000 Residual value guaranteed by lessee (Benson Ltd) $25,000 Interest rate implicit in the lease 8% Present value of $1 annuity over 3 years at 8% per 2.577097 annum 0.793832 Present value of $1 lump sum in 3 years at 8% per annum Required 1. Prepare the lease receipts schedule for Shelton Ltd. (4 marks) 2. Prepare the journal entries in the records of Shelton Ltd at the inception of the lease and for the year ended 30 June 2021