Karuna Consulting Leased a Building on January 2, 2013

question 149

Multiple Choice

Karuna Consulting leased a building on January 2, 2013. The lease qualifies as an operating lease. The annual payments are $25,000 at the beginning of each year, and the life of the lease is 10 years. What entry would the company make on January 2, 2013?

• A)Machine 250,000 Lease Obligation 250,000
• B)Prepaid Rent 250,000 Lease Obligation 250,000
• C)Prepaid Rent 25,000 Lease Obligation 25,000
• D)No entry is necessary.

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Definitions:

Israel

A country in the Middle East, established in 1948, known for its rich historical and cultural heritage as well as its ongoing geopolitical significance.

Targeted Assassinations

The premeditated killing of specific individuals, often for political, military, or ideological reasons, usually by governments or their agents.

CIA

The Central Intelligence Agency; a U.S. government agency responsible for foreign intelligence and covert operations.

Fidel Castro

A Cuban communist revolutionary and politician who was Prime Minister of Cuba from 1959 to 1976 and then President from 1976 to 2008.