FastWater, Inc. signed a lease agreement for approximately 2,000 square feet of retail space at a rate of $1,200 per month. The agreement ran for six years, with an option to renew for five more years; it also included two months of free rent on the front end of the lease. FastWater, Inc. bought a commercial refrigerator, range, and grill for $50,000 in cash, delivered and installed on June 30. This equipment was expected to last five years (per sellers assessment).

Show balance sheet and cash flow entries for the above.