Warrior Inc. leased a commercial generator from Portland Inc. on January 1, 2021 under a 2-year operating lease. Quarterly payments of $21,000 are due at the beginning of each quarter with the first payment due on January 1, 2021. Portland purchased the generator from Magnum Corp. at a cost of $256,000, which is also its fair value. The economic life of the generator is 5 years and the interest rate implicit in the lease is 8%. Warrior records amortization every quarter.

10. Which is part of the entry that Portland will record on July 1, 2021?

A.	Debit lease payable for $18,647
B.	Credit cash for $21,000
C.	Credit lease revenue for $21,000
D.	Credit interest revenue for $2,353