Reference no: EM131222932

Gamison Ltd has leased a warehouse in an industrial section of the twon. The lease is for 5 years and can only be cancelled by Gamison if Gamisons reimburses the landlord for the costs of re-letting the warehouse including any costs of finding a new tenant, any lost rent and any difference between the rent paid by the new tenant and the rent which would have been paid by Gamison if the new tenant pays a lower rent than Gamison did. The landlord maintains responsibility for rates and other taxes, maintenance of the building and carries the risk if the building is damaged. Gamison is responsible for all utilities. The lease commenced on 1st January 2013 and requires quarterly rental payments of $15,000 to be paid on the 1st of January, April, July and October each year with the first payment on 1 st January 2013. Gamison fitted out the warehouse for its needs at the start of the lease and paid $10,000 for the fitout on 1st January 2013. Gamison is required under the lease to pay to remove all its fittings from the warehouse at the end of the lease. Gamison expects that will cost $5,000.The incrimental borrowing rate is 10%.Prepare the balance sheet tratmet /and the financial statment entries if required to the year end 30 june 2014.