Question
ABC Company entered into a short-term lease agreement with XYZ Company for the right to use a truck for 6 months begininning on March 1,
ABC Company entered into a short-term lease agreement with XYZ Company for the right to use a truck for 6 months begininning on March 1, 20X2. The lease agreement requires that ABC Company pay $1,000 monthly to XYZ Company, with the first payment due on March 31, 20X2. What is the journal entry recorded by ABC Company on March 31, 20X2 for the first lease payment?
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Financial Accounting
Authors: Walter B. Meigs, A. N. Mosich, Robert F. Meigs
2nd Edition
0070412901, 978-0070412903
