View the step-by-step solution to:

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...

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?

Top Answer

No entries need to be... View the full answer

Sign up to view the full answer

Other Answers

Lease Payments: The amount paid, regularly, by the... View the full answer


  • I know the journal entry for 7/1/, but what is the journal entry for year end 2014?
    • MINTmintgreen
    • Jun 06, 2018 at 11:56pm
  • is debit rent expense
    • MINTmintgreen
    • Jun 07, 2018 at 12:03am
  • and there is no term "lease payable" when I search on google doc
    • MINTmintgreen
    • 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,
    • Aanchal27
    • Jun 07, 2018 at 2:22am

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online