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John, Inc. signed a 9 year lease on office space on May 1. The lease payments are to be $3,150 per month. The present value
John, Inc. signed a 9 year lease on office space on May 1. The lease payments are to be $3,150 per month. The present value of the lease payments is $289,562.24 using Shoals 3% incremental borrowing rate. Give the journal entry to record the lease, the May 1 lease payment, the May 31 adjustment and the June 1 lease payment assuming the lease is capitalized as a right of use asset.
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