Henson Manufacturing Company Signed a 3-Year Contract for the Use

question 1

Multiple Choice

Henson Manufacturing Company signed a 3-year contract for the use of certain manufacturing equipment with an estimated life of three years.Henson Manufacturing Company cannot cancel the contract.What entry is made to record the contract?

• A)Rent Expense XX
• Cash XX
• B)Manufacturing Equipment XX
• Cash XX
• C)Leased Asset--Manufacturing Equipment XX
• Lease Liability XX
• D)Lease Liability XX
• Leased Asset--Manufacturing Equipment XX
• E)Rent Expense XX
• Leased Asset--Manufacturing Equipment XX

---

Definitions:

Published Decision

A judicial decision that is officially reported and made available to the public, often serving as precedent in future cases.

Binding Authority

Legal sources that a court must follow in making its decision, such as statutes or higher court rulings relevant to the case at hand.

Persuasive Authority

Legal sources that, while not binding, may influence a court’s decision in the absence of binding authority, including legal principles from other jurisdictions or academic commentary.

Michigan Supreme Court

The highest court in the state of Michigan, responsible for interpreting Michigan laws and overseeing the state’s judiciary.