5. You are auditing a new client that just started business in the current year. They signed a 5 year lease for their building. The lease began on July 1, 2014. Their GL shows $0 rent expense for 2014. The lease requires payments as follows.
a. Free rent for 6 months
b. $1,000/month for 2015
c. $1,200/month for 2016
d. $1,300/month for 2017
e. $1,400/month for 2018
f. $1,500/month for last 6 months through June 30, 2019
· What entry, if any, do you need to record at YE 2014. Why?
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- I know the journal entry for 7/1/, but what is the journal entry for year end 2014?
- Jun 06, 2018 at 11:56pm
- is debit rent expense
- Jun 07, 2018 at 12:03am
- and there is no term "lease payable" when I search on google doc
- Jun 07, 2018 at 12:16am
- if it is a finance lease, then depreciation on asset shall be book at the year end 2014 and transfer to Profit & Loss Accounts,
- Jun 07, 2018 at 2:22am