Two independent situations follow: 1. Ready Car Rental leased a car to Martinez Company for three months. Terms of the lease agreement call for monthly payments of $720, beginning on May 21, 2024. Martinez reports using ASPE. 2. On January 1, 2024, InSynch Ltd. entered into an agreement to lease 60 computers from Carla Vista Electronics. The terms of the lease agreement require three annual payments of $40,694 (including 3.5% interest), beginning on January 1, 2024. The present value of the three payments is $113,280 and the market value of the computers is $115,280. InSynch Ltd. reports using IFRS. Prepare the journal entries that Martinez Company should make on May 21, 2024 and Insych Ltd. should make on January 1, 2024 to record the lease agreement. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles 1. Debit Credit

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.