On 30 June 2023, Vax Led leased a plant from Prologic Ltd. Prologic Led had purchased the plant on that day for its fair value of 60,000. The lease agreement, which cost Vax Led 1,954 and Prologic Ltd 1,782 to have drawn up, contained the following:

Lease term: 5 years
Annual payment, payable in advance on 30 June each year: 15,000
Estimated economic life of plant: 6 years
Estimated residual value of plant at end of lease term: 55,000
Residual value guaranteed by Vax Ltd: 54,000
Interest rate implicit in the lease
Included in the annual payment is an amount of 2,000 to cover reimbursement by Vax Ltd of the costs of insurance and maintenance paid by Prologic Lid. The lease is cancellable only with the permission of Prologic Ltd. Vax Ltd will return the plant to Prologic Led at the end of the lease term. Prologic Ltd is a financier lessor. The lease has been classified as a finance lease by Prologic Ltd. Assume that Vax Lid does not expect to make any payments under the guarantee.

Required:
1. Prepare the journal entries recorded by Vax Led to recognize the lease and the related payments throughout the lease.
2. Assume that the actual residual value of the underlying asset on 30 June 2028 is 3,000. Prepare the journal entries recorded by Vax Ltd when returning the asset to Prologic Ltd.
3. Assume that on 30 June 2027, Vax Ltd estimates that the actual residual value of the underlying asset on 30 June 2028 will be 3,500, while the actual residual value of the underlying asset on 30 June 2028 is 3,000. Prepare the journal entries recorded by Vax Lid on and after 30 June 2027 to recognize the lease.