TB MC Qu. 15-98 (Algo) On January 1, 2021, Wellburn Corporation...

On January 1, 2021, Wellburn Corporation leased an asset from Tabitha Company. The asset originally cost Tabitha $380,000. The lease agreement is an operating lease that calls for four annual payments beginning on January 1, 2021, in the amount of $37,000. The other three remaining payments will be made on January 1 of each subsequent year. Which of the following journal entries should Tabitha record on January 1, 2021?

Multiple Choice

• Cash	37,000
  Deferred revenue		37,000

• Cash	37,000
  Rent revenue		37,000

• Cash	37,000
  Rent expense		37,000

• Cash	37,000
  Lease receivable		37,000