During its fiscal year ending June 30, 2017, the Parkville Independent School District enters into a two-year lease for office space covering the period May 1, 2017, through April 30, 2019. Annual rent is $60,000. The lease specifies that the entire rent for each year is paid, in advance, on May 1.
During its fiscal year ending June 30, 2017, the Parkville Independent School District enters into a two-year lease for office space covering the period May 1, 2017, through April 30, 2019. Annual rent is $60,000. The lease specifies that the entire rent for each year is paid, in advance, on May 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During its fiscal year ending June 30, 2017, the Parkville Independent School District enters into a two-year lease for office space covering the period May 1, 2017, through April 30, 2019. Annual rent is $60,000. The lease specifies that the entire rent for each year is paid, in advance, on May 1.
1. Prepare
2. Prepare journal entries to record the lease payments and the lease expenditures for the same years assuming that the district uses the purchases method.
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