Question
On July 1, Pine Region Dairy leased equipment from Farm America for a period of three years. The lease calls for monthly payments of $2,500
On July 1, Pine Region Dairy leased equipment from Farm America for a period of three years. The lease calls for monthly payments of $2,500 payable in advance on the first day of each month, beginning July 1. |
Prepare the journal entry needed to record this lease in the accounting records of Pine Region Dairy on July 1 under each of the following independent assumptions: |
a. | The lease represents a simple rental arrangement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (record the lease on July 1)
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