Question: Please no handwriting, just type the answer. Please do NOT use AI (ChatGPT) Boxhill Ltd has entered into an agreement to lease office equipment to

Please no handwriting, just type the answer. Please do NOT use AI (ChatGPT)

Please no handwriting, just type the answer.Please no handwriting, just type the answer.Please no handwriting, just type the answer.
Boxhill Ltd has entered into an agreement to lease office equipment to Whitehorse Ltd. The lease agreements details are as follows: Length of lease 3 years Commencement date of lease agreement 1-July-2022 Half-yearly payments, commencing on 31 December 2022 and $12,000 thereafter on 30 June and 31 December respectively Maintenance cost included in each half-yearly payment $1,000 Direct cost incurred at the commencement of the lease term on $2,000 1 July 2022 Estimated economic life of the office equipment 5 years Estimated residual value of the office equipment at the end of its $3,000 economic life Guaranteed residual value (by the lessee) $6,000 Interest rate implicit in the lease 10% per annum Assume that the ownership will be transferred to the lessee Whitehorse Ltd at the end of the lease term. *Present value factors: PV of an ordinary annuity of $1 PV of $1 Interest rate Interest rate Periods 5% 10% Periods 5% 10% 3 2.7232 2.4869 3 0.8638 0.7513 4 3.5460 3.1699 4 0.8227 0.6830 5 4.3295 3.7908 5 0.7835 0.6209 6 5.0757 4.3553 6 0.7462 0.5645Required: (Rounded to the nearest dollar) (a) Calculate the lease asset and lease liability for Whitehorse Ltd (show workings). (b) Prepare journal entries to account for the lease transaction in the books of Whitehorse Ltd from 1 July 2022 to 30 June 2023. (Narrations are not required).\f

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