When Sunny City Makes Its Annual Lease Payment on an Unpaid

question 51

Multiple Choice

When Sunny City makes its annual lease payment on an unpaid lease obligation, the journal entry for the debt service fund accounts will include:

• A) A debit to Lease Obligation Payable.
• B) A credit to Lease Obligation Payable.
• C) A debit to Lease Expense.
• D) A debit to Expenditures-Principal of Lease Obligation.

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Definitions:

Raising The Check

Increasing the amount payable on a check, often through unauthorized alteration.

Transfer Warranty

A legal guarantee by the seller that they have the right to transfer a title and that the title is free from any lien or encumbrance not disclosed in the contract.

Jones V.Wells Fargo Bank, N.A.

A legal case involving allegations against Wells Fargo Bank regarding its mortgage practices.

Conversion

The unauthorized act of taking someone else's property and converting it into one's own use, which infringes on the legal rights of the owner.