Ask Question
19 July, 13:00

On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments is $100,000. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

+2
Answers (1)
  1. 19 July, 14:17
    0
    April 1, 2021

    Dr. Right to use $100,000

    Cr. Lease Liability $100,000

    Explanation:

    Lease Liability is recorded at the present value of the future lease cash flows. The lease to use an Asset is a right for which the lessee pays. The right to use is considered as an asset. So it is debited as assets have debit balances. On the other hand a Lease Liability for the same amount is incurred which needs to be adjusted in whole lease period.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments is $100,000. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers