On June 1, 2009, National Equipment Rental leased equipment to the Glendale Comm

Question

On June 1, 2009, National Equipment Rental leased equipment to the Glendale Community Club and Craig Legal Services. Glendale signed a lease indicating the club would rent portable tables for the month of June 2009 at a cost of $2,200 to be paid in July 2009. Craig Legal Services signed a lease indicating that the business would rent computer equipment for the three-year period ended May 31, 2012. Craig is required to pay $18,000 at the end of each year; these payments equate to a present value of $46,388 on June 1, 2009.

Prepare the journal entry that Glendale Community Club should record on June 30, 2009. (Omit the "$" sign in your response.)

Prepare the journal entry that Craig Legal Services should record on June 1, 2009. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Prepare the journal entry that Glendale Community Club should record on June 30, 2009. (Omit the "$" sign in your response.)

Explanation / Answer

Debit Rent Expense 2200 Credit Rent Payable 2200 Debit Computer Equipment 54000 Credit Lease Liability 54000

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