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On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual lease payments on December
On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual lease payments on December 31 of each year. The payments are $12,250 the first year and increase by $825 per year. Benefits expected from using the office space are expected to remain constant over the lease term. Required: Record Sweetwater's lease payment at December 31, 2025 (the fifth lease payment), and December 31, 2035 (the fifteenth lease payment). (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Answer is not complete. No Credit Date December 31, 202 Lease expense Cash Deferred lease expense payable Debit 13,075 1 2 December 31, 203 Lease expense 24,625 Cash X 24,625 X 0 X Deferred lease expense payable
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