Gerbert Plc Enters into a Finance Lease with Hokiman Plc

Gerbert Plc enters into a finance lease with Hokiman Plc on 1 July 2012 for an item of machinery that has a fair value at that date of €226 718.The lease is for a period of 4 years,with annual lease payments of €62 000 due on 30 June each year,the first payment to be made in 2013.There is a bargain purchase option of €15 000 available for Hokiman to exercise at the end of the lease period.The rate of interest implicit in the lease is 6%.It cost Gerbert Plc €190 000 to manufacture the machine.What are the entries in the books of Gerbert Plc for 1 July 2012 and 30 June 2013 (round amounts to the nearest euro) ?

A) $$\begin{array}{l}01 \text { July } 2012\\\begin{array} { | c | l | c | c | } \hline \mathrm { Dr } & \text { Lease receivable } & 226718 & \\\hline \mathrm { Cr } & \text { Machine } & & 226718 \\\hline & & \\\hline{ \text {June } 30,2013 } & & \\\hline \mathrm { Dr } & \text { Cash } & 62000 & \\\hline \mathrm { Cr } & \text { Interest revenue } & & 13603 \\\hline \mathrm { Cr } & \text { Lease receivable } & & 48397 \\\hline\end{array}\end{array}$$
B) $01 \text { July } 2012$
$\begin{array}{|l|l|l|l|}\hline \mathrm{Dr} & \text { Lease receivable } & 226718 & \\\hline \mathrm{Dr} & \text { Cost of sales } & 190000 & \\\hline \mathrm{Cr} & \text { Inventory } & & 190000 \\\hline \mathrm{Cr} & \text { Sales } & & 226718 \\\hline\end{array}$

$30 \text { June } 2013$
$\begin{array}{|c|l|c|c|}\hline\mathrm{Dr} & \text { Cash } & 62000 & \\\hline \mathrm{Cr} & \text { Interest revenue } & & 13603 \\\hline \mathrm{Cr} & \text { Lease receivable } & & 48397\\\hline\end{array}$
C) 01 July 2012
$\begin{array}{|c|l|c|c|}\hline \mathrm{Dr} & \text { Lease receivable } & 226718 & \\\hline \mathrm{Cr} & \text { Machine } & & 190000 \\\hline \mathrm{Cr} & \text { Deferred gain } & & 36718 \\\hline\end{array}$

$30 \text { June } 2013$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Cash } & 62000 & \\\hline \mathrm{Dr} & \text { Deferred gain } & 9180 & \\\hline \mathrm{Cr} & \text { Interest revenue } & & 13603 \\\hline \mathrm{Cr} & \text { Lease receivable } & & 57577 \\\hline\end{array}$
D) 01 July 2012
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Lease receivable } & 263000 & \\\hline \mathrm{Cr} & \text { Unearned interest } & & 36282 \\\hline \mathrm{Cr} & \text { Machine } & & 226718 \\\hline\end{array}$


$30 \text { June } 2013$
$\begin{array}{|r|l|r|r|}\hline \mathrm{Dr} & \text { Cash } & 62000 & \\\hline \mathrm{Cr} & \text { Unearned interest } & & 9071 \\\hline \mathrm{Cr} & \text { Lease receivable } & & 52929 \\\hline\end{array}$