On January 1 of the current year, Fields Corporation leased a machine from Kilmer Company....
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Accounting
On January 1 of the current year, Fields Corporation leased a machine from Kilmer Company. The machine originally cost Kilmer $450,000. The lease is an operating lease that requires for five annual payments of $54,000 beginning on January 1 of the current year. Which of the following journal entries should Kilmer record on January 1 of the current year?
A. Cash 54,000
Rent Expense 54,000
B. Cash 54,000
Unearned Rent Revenue 54,000
C. Cash 54,000
Rent Revenue 54,000
D. Cash 54,000
Lease Receivable 54,000
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