Lee Ltd agreed to manufacture Product A according to Smith Ltd's specifications over a 2-year period. Because special machinery is needed to produce Product A, Smith Ltd is to pay for it. Lee Lid purchased the machinery for $1 000 000. It debited Machinery and credited Cash. A month later, Lee Ltd received $1 000 000 from Smith Ltd as reimbursement of the cost. What entry should Lee Ltd make for the cash received? When Lee Ltd uses the machinery each year, what entry should be made?

AppendixLO1