Q1. Driver Ltd signs a five year lease agreement with Bakewell Ltd on 1st July 2019. The lease is for new equipment which has at the star of the lease a fair value of $341,755. The equipment is estimated to have a useful life of seven years with no residual value at the end of that time. Driver Ltd has a bargain purchase option which can be taken up at the end of the lease term for $68,000. The equipment originally cost Bakewell Ltd $272,000. There are five annual lease payments of $85,000 starting on 30th June 2020. Within the $85,000 is an executory payment for insurance, repairs and maintenance of $8,500. A straight-line basis of depreciation has been adopted for the equipment. The rate of interest implicit in the lease is 9 per cent. Required; Prepare the Journal entries for the years ending 30 June 2020 and 30 June 2021 in the books of: (a) Bakewell Ltd and (b) Driver Ltd. (13 marks) Q2. Ewe Beudie Ltd is an Australian company. The functional currency of Ewe Beudie Ltd is the Australian dollar. It prepares financial reports half yearly and in the year ended 30 June 2017, Ewe Beudie Ltd had the following foreign currency transactions in Euros (€): (a) On 13th September 2016 Ewe Beudie Ltd ordered machinery €900,000 from a French company under a FOB destination contract. On 10th October 2016, the machinery was delivered. On 17th February 2017, the invoice for the purchase was paid. (b) On 2nd December 2016 Ewe Beudie Ltd sold inventory to an Italian customer for the agreed price of €650,000. The inventory had a cost of $420,000. On 24th February 2017, the invoice was paid by the customer. (c) On 1 July 2016, Ewe Beudie Ltd made an interest free loan to an Irish company, Ninety Craic Ltd, for €1,200,000. The term of the loan is 5 years. Applicable exchange rates are as follows: 1 st July 2016 €1 = A$1.24 13th September 2016 €1 = A$1.12 10th October 2016 €1 = A$1.18 2 nd December 2016 €1 = A$1.27 31st December 2016 €1 = A$1.22 17th February 2017 €1 = A$1.20 24th February 2017 €1 = A$1.15 30 June 2017 €1 = A$1.26 Required In accordance with AASB 121, prepare the entries of Ewe Beudie Ltd for the half year to 31 December 2016 and the full year to 30 June 2017. .