Fast Ltd manufactures specialised moulding machinery for both sale and lease. On 1 July 2023, Fast Ltd leased a machine to Furious Ltd. The machine being leased cost Fast Ltd $235  000 to make and its fair value at 1 July 2023 is considered to be $260 629. The terms of the lease agreement are as follows. Lease term 5 years Annual payment, payable in arrears on 30 June each year $65 000 Estimated economic life of machine 8 years Estimated residual value of machine at end of economic life $2 000 Estimated residual value of machine at end of lease term $9 000 Residual value guaranteed by Furious Ltd $6 000 Interest rate implicit in the lease 7% The annual payment includes an amount of $3 000 to cover annual maintenance and insurance costs. Furious Ltd may cancel the lease but only with the permission of the lessor. Furious Ltd intends to lease another machine from Fast Ltd at the end of the lease term. Fast Ltd incurred $2 500 in initial direct costs to set up the lease agreement. Required 1. Classify the lease for Fast Ltd. Justify your answer. 2. Prepare: a. the lease receipts schedule for Fast Ltd b. the journal entries in the books of Fast Ltd for the year ended 30 June 2024. 3. Assuming that Furious Ltd can cancel the lease without incurring any penalties, prepare the journal entries in the books of Fast Ltd for the year ended 30 June 2024.

Small Ltd signed a 3-year contract with Big Ltd for the use of a machinery on 1 July 2022 with the option to purchase the machinery at the end of the lease term. It is reasonably expected that Small Ltd will exercise the bargain purchase option. The leased machinery meets the criteria of a leased asset in accordance with AASB16 Leases. The following information shows the lease terms: Lease term (non-cancellable):3 years. Expected useful life of the machinery:8 years. Expected residual value of the machinery:$5,000. Residual value guaranteed:$40 000. Expected fair value of the machinery at the end of lease term:$50 000. Bargain purchase price at the end of lease term:$60 000. Net initial directly attributable costs (paid at 1 July 2022):$10 000. Initial lease payment (paid at 1 July 2022):$30 000. Annual lease payment (paid in arrears at 30 June):$80 000. Annual maintenance & insurance included in the annual lease payment:$10 000. Interest rate implicit in the lease:10% p.a. Required: How much initial lease liability that Small Ltd. should recognise on 1 July 2022 (rounded to the nearest dollar) in accordance with the requirements of AASB 16 Leases?

ABC Ltd signed a 4-year contract with Comp Ltd for the use of a customised machinery on 1 July 2022.ABC Ltd intends to return the asset at the end of the lease term. The leased machinery meets the criteria of a leased asset in accordance with AASB16 Leases. The following information shows the lease terms: Lease term (non-cancellable)4 yearsExpected useful life of the machinery6 yearsExpected fair value of the machinery at the end of lease term$30 000Residual value guaranteed$50 000Bargain purchase price at the end of lease term$60 000Net initial directly attributable costs (paid at 1 July 2022)$8 000Annual lease payment (paid in arrears) $70 000Interest rate implicit in the lease10% p.a. Required:Which journal entries that ABC needs to record on 1 July 2022 in relation to the lease contract?

ABC Ltd signed a 4-year contract with Comp Ltd for the use of a customised machinery on 1 July 2022.ABC Ltd intends to return the asset at the end of the lease term. The leased machinery meets the criteria of a leased asset in accordance with AASB16 Leases. The following information shows the lease terms: Lease term (non-cancellable) 4 years Expected useful life of the machinery 6 years Expected fair value of the machinery at the end of lease term $30 000 Residual value guaranteed $50 000 Bargain purchase price at the end of lease term $60 000 Net initial directly attributable costs (paid at 1 July 2022) $8 000 Annual lease payment (paid in arrears) $70 000 Interest rate implicit in the leaseWhat is the amount to be recorded as a Non-current Lease Liability in the books of ABC Ltd that is in accordance with AASB16 Leases on 30 June 2023? Group of answer choices $174,080 $189,106 $138,017 $121,488

ABC Ltd signed a 4-year contract with Comp Ltd for the use of a customised machinery on 1 July 2022.ABC Ltd intends to return the asset at the end of the lease term. The leased machinery meets the criteria of a leased asset in accordance with AASB16 Leases. The following information shows the lease terms: Lease term (non-cancellable) 4 years Expected useful life of the machinery 6 years Expected fair value of the machinery at the end of lease term $30 000 Residual value guaranteed $50 000 Bargain purchase price at the end of lease term $60 000 Net initial directly attributable costs (paid at 1 July 2022) $8 000 Annual lease payment (paid in arrears) $70 000 Interest rate implicit in the lease 10% p.a. What is the amount to be recorded as a Non-current Lease Liability in the books of ABC Ltd that is in accordance with AASB16 Leases on 30 June 2023? Group of answer choices $174,080 $189,106 $138,017 $121,488

A company allows its sales representatives discretion to offer price discounts below its $4 list price per unit sold. Details relating to three key customers for the month are listed​ below:Customers A B CUnits sold 10,000 15,000 1,500Discount given per unit $0.30 $0.10 $0.40Number of purchase orders 25 30 27Number of deliveries 52 20 26Number of sales visits 2 1 1Miles travelled per delivery 12 35 30Number of 'fast' orders 1 4 1 Additional​ information: A​ 'fast' order is an emergency​ order, outside of normal delivery​ schedules, and incurs a total cost of  ​$150.  Other​ cost-driver rates are detailed as​ follows:Activity Area Cost-Driver RateOrder-taking $80 per orderDelivery vehicle costs $1 per mile travelledSales visits $90 per visitProduct packaging $0.05 per unit sold Assuming the cost of goods sold is ​$3 per​ unit, calculate the operating profit generated by customer C.