Prepare the entries for lessee and lessor for lease term

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Reference no: EM131286321

On January 1, 2013, Zillo Co. leased office space by signing a 3-year operating lease with Geka Co. Zillo made a down payment of $9,000 on that date. Zillo additionally made a payment of $5,000 on Jan. 1 of 2013, 2014, and 2015. With the permission of the Geka, Zillo also made a modification that is a Leasehold Improvement for the cost of $15,000. The office space cost the Geka $200,000 and has a useful life of 20 years.

Prepare the entries for Zillo (lessee) and Geka (lessor) for the three years of the lease term.

Reference no: EM131286321

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