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On January 1, 2021, Wellburn Corporation leased an asset from Tabitha Company. The asset originally cost Tabitha $420,000. The lease agreement is an operating lease that calls for four annual payments beginning on January 1, 2021, in the amount of $44,000. The other three remaining payments will be made on January 1 of each subsequent year. Which of the following journal entries should Tabitha record on January 1, 2021? Multiple Choice O Cash Rent revenue Cash Deferred revenue Cash Rent expense Cash Lease receivable 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000

On January 1, 2021, Wellburn Corporation leased an asset from Tabitha Company. The asset originally cost Tabitha $420,000. The lease agreement is an operating lease that calls for four annual payments beginning on January 1, 2021, in the amount of $44,000. The other three remaining payments will be made on January 1 of each subsequent year. Which of the following journal entries should Tabitha record on January 1, 2021? Multiple Choice O Cash Rent revenue Cash Deferred revenue Cash Rent expense Cash Lease receivable 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2021, Wellburn Corporation leased an asset from Tabitha Company. The asset originally cost Tabitha $420,000. The lease agreement is an operating lease that calls for four annual payments beginning on January 1, 2021, in the amount of $44,000. The other three remaining payments will be made on January 1 of each subsequent year. Which of the following journal entries should Tabitha record on January 1, 2021? Multiple Choice Cash Rent revenue Cash Deferred revenue Cash Rent expense Cash Lease receivable. 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000
Transcribed Image Text:On January 1, 2021, Wellburn Corporation leased an asset from Tabitha Company. The asset originally cost Tabitha $420,000. The lease agreement is an operating lease that calls for four annual payments beginning on January 1, 2021, in the amount of $44,000. The other three remaining payments will be made on January 1 of each subsequent year. Which of the following journal entries should Tabitha record on January 1, 2021? Multiple Choice Cash Rent revenue Cash Deferred revenue Cash Rent expense Cash Lease receivable. 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000
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