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1.On January 1, 2013, Winn Heat Transfer leased office space under a three year operating lease agreement. The arrangement specified three annual rent payments of $80,000 each, beginning January 1, 2013, the inception of the lease, and at each January 1 through 2015. Winn also paid a $96,000 advance payment at the inception of the lease in addition to the first $80,000 rent payment. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $180,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value.Required:Prepare the appropriate entries for Winn Heat Transfer from the inception of the lease through the end of 2013. Winn,s fiscal year is the calendar year. Winn uses straight-line depreciation.
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