Lessor leases asset to Lessee on 1/1/2020. Lease term is 1 year. Lease payment is $10,000/month with each payment due at the end of the month. Lessee elects the shortcut method for short-term leases. 

Required 

Prepare Lessor and Lessee entries to record the 1/31/2020 lease payment.

Possible journal entries:
Accumulated depreciation (Bal. Sht)
Cash (Bal. Sht)
Deferred rent revenue (Bal. Sht)
Equipment (Bal. Sht)
Lease payable (Bal. Sht)
Lease receivable (Bal. Sht)
Note payable (Bal. Sht)
Prepaid service contract (Bal. Sht)
Right-of-Use asset (Bal. Sht)
Warehouse (Bal. Sht)
Amortization expense (Inc. Stmt)
Cost of goods sold (Inc. Stmt)
Gain on sale of warehouse (Inc. Stmt)
Interest expense (Inc. Stmt)
Interest revenue (Inc. Stmt)
Lease expense (Inc. Stmt)
Lease revenue (Inc. Stmt)
Misc. expenses (Inc. Stmt)
Rent revenue (Inc. Stmt)
Sales revenue (Inc. Stmt)

Answer rating: 100% (QA)

Jomal Enties Panticular In the books of Lessee Date De bit ... View the full answer