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On 1 July 2020- Madrid Ltd leased a processing plant from Reece Ltd- T.docx

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Madrid Ltd entered into a finance lease agreement with Reece Ltd on July 1, 2020 to lease a processing plant. The agreement required Madrid Ltd to prepare a lease payment schedule and make journal entries at inception of the lease and for the year ended June 30, 2021 to record the transaction.

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On 1 July 2020, Madrid Ltd leased a processing plant from Reece Ltd. The finance lease agreement contained the following provisions. Required 1. Prepare the lease payments schedule for Madrid Ltd. 2. Prepare the journal entries in the records of Madrid Ltd at the inception of the lease and for the year ended 30 lune 2021.

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