KK leases a 100 desk phones for use in one of its offices. The contract term states that there will be an annual rental payment of R9 000 for eight years. The lease arrangement begins on 1 July 20x0. As an incentive to KK, no payment s required in the first year. The desk phones are to be classified as a lowvalue item. Prepare the correct debit or credit entry that would be required in Entity KK’s income statement for the year ended 30 June 20x1 in respect of the above transaction.

Answer rating: 100% (QA)

ANSLJER A ccouf htde Debit conedit Leage asset ... View the full answer