On January 1, 2016, Winn Heat Transfer leased office space under a four-year operating lease agreement. The arrangement specified four annual rent payments of $73,000 each, beginning January 1, 2016, the inception of the lease, and at each January 1 through 2019. Winn also paid a $89,000 advance payment at the inception of the lease in addition to the first $73,000 rent payment. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $194,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value.

Required:

Prepare the appropriate entries for Winn Heat Transfer from the inception of the lease through the end of 2016. Winn's fiscal year is the calendar year. Winn uses straight-line depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

A. Record the advance payment for rent.

B. Record the annual rent payment.

C. Record the structural modifications of the building.

D. Record the annual rent.

E. Record the advance payment allocation.

F. Record the depreciation expense.