Question
Kathy Waltz, owner of the new Trio Cafe, signed a building lease for three years for $1,000 per month on April 1, 20X4. She has
Kathy Waltz, owner of the new Trio Cafe, signed a building lease for three years for $1,000
per month on April 1, 20X4. She has paid $3,000 for the first three months' rent covering
April-June, 20X4.
Required:
1. Prepare the journal entry to recognize the payment and the rent expense for April.
2. Prepare the adjusting entry to recognize lease expense for May.
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
4th edition
1405888202, 978-0273711490, 273711490, 978-1405888202
