operating Lease:

The company began leasing its main office for $3,500 per month on Jan. 1, 2019. On its face, the lease expires December 31,2022, but there is an option to extend for an additional 5 years at $4,500 per month. The space was built out by the lessor, to suit the lessee, prior occupancy, and there have been no significant improvements to the space since. The company also rents its electronic parts storage warehouse for $1,000 per month. The lease was signed 4/1/2019 and expires which expires 12/31/2020 has an automaticrent escalation of 10% per yearfor every yearin which the consumer price index increase. No rent payments for 2019 have been recorded.Note this is the space rentedfor the company to occupy, not space they rentout to others used 6.3% to calculate net Present value

. create amortization schedule and Journal entry