On July 1, 2023, Sherlock Ltd leased a processing facility from Holmes Ltd. Sherlock Ltd purchased the facility on July 1, 2023 for its fair value of $348,942. The lease contained the following provisions:

Lease Term	3 years
Economic life of the plant	5 years
Annual rent payment, late (as of 6/30/24)	$120 000
Residual value at the end of the lease term	$50 000
Residual guaranteed by the lessee	$30 000
Interest rate implicit in the lease	8%
The lease is terminated only with the permission of the landlord.

Holmes Ltd intends to return the processing plant to Sherlock Ltd at the end of the lease term. The lease has been classified as a finance lease by Sherlock Ltd.

Required

1. Prepare:

1. the lease payment schedule for Holmes Ltd (show all jobs)
2. the journal entries in the records of Holmes Ltd for the year ending 30 June 2025.

2. Prepare:

1. the lease receipt schedule for Sherlock Ltd (show all jobs)
1. the journal entries in the records of Sherlock Ltd for the year ending 30 June 2025.