On January 1, 20x1, Asus Co. leased an office space from Acer, Inc. Payments on the lease will be made as

follows:

Year Rental payment

Dec. 31, 20x1 200,000

Dec. 31, 20x2 240,000

Dec. 31, 20x3 260,000

700,000

January 1, 20x1

Lease bonus paid to Acer 40,000

Security deposit paid to Acer 30,000

As an inducement to enter to the lease, Acer granted Asus the first six months of the lease rent-free.

Requirement: Provide all journal entries in the books of Acer (Lessor) and compute the total rent income in

20x1. (10 pts)

Books of Acer Co. - Lessor

Jan. 1, 20x1

Cash on hand 40,000

Unearned Rent Income 40,000

to record receipt of lease bonus

Jan. 1, 20x1

Cash on hand 30,000

Liability for Rent Deposit 30,000

to record receipt of security deposit

Dec. 31, 20x1

Cash on hand 100,000

Rent Receivable 100,000

Rent Income 200,000

to record collection of rent

Dec. 31, 20x1

Unearned Rent Income 13,333

Rent Income 13,333

to record amortization of lease bonus

Dec. 31, 20x2

Cash on hand 240,000

Rent Receivable 40,000

Rent Income 200,000

to record collection of rent

Dec. 31, 20x2

Unearned Rent Income 13,333

Rent Income 13,333

to record amortization of lease bonus

Dec. 31, 20x3

Cash on hand 260,000

Rent Receivable 60,000

Rent Income 200,000

to record collection of rent

Dec. 31, 20x3

Unearned Rent Income 13,333

Rent Income 13,333

to record amortization of lease bonus

Dec. 31, 20x3

Liability for Rent Deposit 30,000

Cash in bank 30,000

to record