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, 2021. Dumfries reports using ASPE.

2. On January 1, 2021, InSynch Ltd. entered into an agreement to lease 60 computers from Hi- Tech Electronics. The terms of the lease agreement require three annual payments of $43,737 (including 5.5% interest), beginning on December 31, 2021. 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 entry, if any, that each company must make to record the lease agreement.