Question 22

On December 1, 2015, Goetz Corporation leased office space for 10 years at a monthly rental of $90,000. On that date Goetz paid the landlord the following amounts:

Rent deposit	$90,000
First month's rent	90,000
Last month's rent	90,000
Installation of new walls and offices	720,000
	$990,000

The entire amount of $990,000 was charged to rent expense in 2015. What amount should Goetz have charged to expense for the year ended December 31, 2015?

Question 23

The original sale of the $50 par value common shares of Gray Company was recorded as follows:

Cash	300,900
Common Stock	255,000
Paid-in Capital in Excess of Par	45,900

Transactions:

(a)	Bought 380 shares of common stock as treasury shares at $62.
(b)	Sold 130 shares of treasury stock at $60.
(c)	Sold 70 treasury shares at $67.

Record the treasury stock transactions (given above) under the cost method: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
(a)
(b)
(c)