Use the information for Wing Corporation and Sharda Inc. from BE20-23. Assume that Sharda, the lessor, has a June 30 year end. Prepare Sharda's entry on August 15, 2017 and any adjusting entry needed on June 30, 2018.

In BE20-23

Wing Corporation enters into a lease with Sharda Inc., a lessor, on August 15, 2017 that does not transfer ownership or contain a bargain purchase option, and it is not for specialized equipment. Both Wing and Sharda use IAS 17. The lease covers three years of the equipment's eight-year useful life, and the present value of the minimum lease payments is less than 90% of the equipment's fair value. Prepare Wing's journal entry to record its August 15, 2017 annual lease payment of $31,500. Wing has a November 30 year end.