QUESTION $2$

Lease Solutions Lud has requested your help in poepuring their financial statements as they

are unsure of the requirements of NZ IFRS I $16$ Leases for lessors.

You are provided with the following lease details:

i$)$ Determine the finance lease receivable balance at the commencement date of the lease and complete the

lessor's table in the space provided

Prepare the journal entry at $1$ April $2019$ for the lessor:

ii$)$ Prepare financial statements, over the lease period, to reflect the effects of the lease.

iii$)$ Clearly explain why there was a payment of $$20000$ made by the Lessee to the Lessor on $31$ March $2023.$

iv$)$ Prepare the journal entries for the lessor at $31$ March $2023$ to $(1)$ recognise the fixed payment received and

the interest income for the year ending $31$ March $2023,$ and $(2)$ recognise the return of the underlying asset and

the receipt of the $$20000$ at $31$ March $2023$