Question
Al signs a contract to rent a building for 12 months at a rate of $1,200 per month. The contract begins on 3/1/14. Al makes
Al signs a contract to rent a building for 12 months at a rate of $1,200 per month. The contract begins on 3/1/14. Al makes an initial payment of $6,000 and will pay the remainder of the rental fees at the end of the contract (2/28/15).
Al signs a contract to rent a delivery van for $250/month. The rental period is 12 months and begins on 2/1/14. Payments for each month are made on the first of the month, starting on 2/1/14. [Assume all of these payments are made they will not be shown explicitly in this list of transactions.]
Al arranges to buy a corporate jet for $200,000 and will take delivery in June of 2015. No cash is exchanged.
What are the journal entry for these three ?
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