Large Mart has previously attempted to design and develop an interactive screen called Collaborate The interactive screen will allow teachers to present interactively with sound, touch and animation. However, Large Mart has recently discovered that an Italian company called Milano already holds a patent for this type of device. As a result, Large Mart has given up on its development attempts and decided to sell the Milano product, which is called Interrativo.

In order to sell Interrativo, Large Mart has rented a second store in Albury. The rent contract is for two (2) months with an option to extend the contract by a further ten (10) months. Large Mart signs the contract on 1st June 201x. The rent for the store will be $2,580 per month and rent payments will be made by electronic funds transfer (EFT) on the last day of the month.

On 1st June 201x when the renting contract for the new store is signed, Large Mart employs a Game Designer Educator (John) and a store assistant (Ben) to work in the store in Albury. John is employed for 7.5 hours per day from Monday to Friday (5 days a week). He begins his jobs on 10th June 201x and will be paid $60 per hour. Ben is employed for 5 hours every day of the week (7 days a week). He starts his job on 14th June 201x and will be paid $30 per hour. Large Mart's payroll is processed on the 5th day of each month.

Question: Provide all journal entries that are necessary in the books of Large Mart to account for the signing of the renting contract (if any). In addition, provide all journal entries that are necessary in the books of Large Mart to account for the payment of rent and wages (if any). Also, provide a detailed explanation of why you have chosen the accounting treatment that you have used.