Accumulated depreciation (Bal. Sht)

Cash (Bal. Sht)

Deferred rent revenue (Bal. Sht)

Equipment (Bal. Sht)

Lease payable (Bal. Sht)

Lease receivable (Bal. Sht)

Note payable (Bal. Sht)

Prepaid service contract (Bal. Sht)

Right-of-Use asset (Bal. Sht)

Warehouse (Bal. Sht)

Amortization expense (Inc. Stmt)

Cost of goods sold (Inc. Stmt)

Gain on sale of warehouse (Inc. Stmt)

Interest expense (Inc. Stmt)

Interest revenue (Inc. Stmt)

Lease expense (Inc. Stmt)

Lease revenue (Inc. Stmt)

Misc. expenses (Inc. Stmt)

Rent revenue (Inc. Stmt)

Sales revenue (Inc. Stmt)

Problem 12. Lessor leases asset to Lessee on 1/1/2020. Lease term is 1 year. Lease payment is $10,000/month with each payment due at the end of the month. Lessee elects the shortcut method for short-term leases. Required 1. Prepare Lessor and Lessee entries to record the 1/31/2020 lease payment. Lessee entry: Account Debit Credit 1 1 Lessor entry: Account Debit Credit NN