Two independent situations follow: 

1. Ready Car Rental leased a car to Dumfries Company for three months. Terms of the lease agreement call for monthly payments of $750, beginning on May 21, 2024. Dumfries reports using ASPE. 

2. On January 1, 2024, InSynch Ltd. entered into an agreement to lease 60 computers from HiTech Electronics. The terms of the lease agreement require three annual payments of $40,694 (including 3.5% interest), beginning on January 1, 2024. The present value of the three payments is $118,000 and the market value of the computers is $120,000. InSynch Ltd. reports using IFRS. 

Instructions 

Prepare the journal entries that Dumfries Company should make on May 21, 2024 and Insych Company should make on January 1, 2024 to record the lease agreement.