A 5-Year Lease Contract Is Signed on 1/1/x1 Calling for $4,000

question 89

Multiple Choice

A 5-year lease contract is signed on 1/1/x1 calling for $4,000 to be paid by the lessee on 12/31/x1,and $6,000 on 12/31/x2,x3,and x4.Total lease payments over the lease term are therefore $22,000.The lessee expects to use the leased asset evenly throughout the lease term,which ends 12/31/x4.No payment is due in 20x2.The entry recorded by the lessee for this operating lease,on 12/31/x1 includes which of the following?

• A) cr. rent payable $200
• B) dr. rent expense $4,400
• C) dr. prepaid rent $400
• D) dr. rent expense $4,000

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Definitions:

Right Atrium

The upper right chamber of the heart, which receives deoxygenated blood from the body and pumps it to the right ventricle.

Right Ventricle

The chamber of the heart that receives deoxygenated blood from the right atrium and pumps it into the pulmonary arteries.

Left Atrium

The upper left chamber of the heart that receives oxygenated blood from the lungs and pumps it into the left ventricle.

Diastole

The phase of the cardiac cycle during which the heart relaxes and fills with blood after contraction.