Provide all journal entries in the books of REMNANT

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Question - On January 1, 20x1, REMNANT Co. leased an office space from REMAINDER, Inc. under an operating lease with the following information:

Annual rent 200,000

Lease bonus paid to REMAINDER 40,000

Security deposit paid to REMAINDER 30,000

Lease term 5 years

Additional information: Annual rental payment includes P10,000 to cover insurance taken by REMAINDER on the leased property. First rental payment is due on December 31, 20x1 and at each year-end thereafter.

The security deposit will be returned to REMNANT at the end of the lease term. The appropriate discount rate is 10%.

Requirement - Provide all journal entries in the books of REMNANT (Lessee) and REMAINDER (Lessor).

Reference no: EM132632105

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