During its scal year ending June 30, 2014, the Parkville Independent School District enters into a two year lease for ofce space covering the period May 1, 2014, through April 30, 2016 Annual rent is $60,000 The lease species that the entire rent for each year is to be paid, in advance, on May 1 1 ...

1 Consumption method May 1 2014 Prepaid rent 60000 Cash 60000 To record the payment of rent June 30 ...

During its scal year ending June 30, 2014, the Parkville Independent School District enters into a two-year

Question:

During its ﬁscal year ending June 30, 2014, the Parkville Independent School District enters into a two-year lease for ofﬁce space covering the period May 1, 2014, through April 30, 2016. Annual rent is $60,000. The lease speciﬁes that the entire rent for each year is to be paid, in advance, on May 1.
1. Prepare journal entries to record the lease payments and the lease expenditures for ﬁscal years ending June 30, 2014, 2015, and 2016, assuming that the district uses the consumption method.
2. Prepare journal entries to record the lease payments and the lease expenditures for the same years assuming that the district uses the purchases method.