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April 16, 2014

Homework Help: Accounting

Posted by Anoymous on Monday, March 8, 2010 at 7:07pm.

On January 1, 2009, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual rent payments on December 31 of each year. The payments are $11,000 the first year and increase by $600 per year. Benefits expected from using the office space are expected to remain constant over the lease term.

Required:
Record Sweetwater's rent payment at December 31, 2013 (the fifth rent payment) and December 31, 2023 (the 15th rent payment).

I figured out for the 5th and 15th rental payment you would:
dr. Rent Expense
cr. Deferred Rent Expense Payable
cr. Cash

But I cannot figure out what amount the rent expense and cash would be on each of these payments. Can someone help me?

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