November 27, 2015

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.

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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