On January 1, the Forman Group Leased Some Equipment on a 5-Year

question 67

Multiple Choice

On January 1, the Forman Group leased some equipment on a 5-year lease, paying $15,000 per year each December 31. The lease is considered to be an operating lease. The general journal entry to record the first lease payment on December 31 should be:

• A)Debit Rent Expense $15,000; credit Cash $15,000.
• B)Debit Rent Expense $75,000; credit Rent Payable $75,000.
• C)Debit Rent Expense $15,000; credit Prepaid Rent $15,000.
• D)Debit Cash $15,000; credit Prepaid Rent $15,000.
• E)Debit Lease Liability $15,000; credit Cash $15,000.

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Definitions:

Verbal Persuasion

The technique of using spoken words to influence or convince others to adopt a particular viewpoint or take a specific action.

Motivation

The reasons or incentives that drive an individual to act in a particular way or pursue specific goals.

Self-Efficacy

An individual's belief in their capability to execute behaviors necessary to produce specific performance attainments.

Enactive Mastery

Gaining confidence and proficiency in a specific skill or task through direct experience and successful performance.