Operating lease agreement

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Reference no: EM131851297

On January 1, 2016, 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 $13,000 the first year and increase by $575 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, 2020 (the fifth rent payment) and December 31, 2030 (the 15th rent payment). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record Sweetwater's rent payment at December 31, 2020.

Record Sweetwater's rent payment at December 31, 2030.

Reference no: EM131851297

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