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Blume Corporation leases equipment for a ten-month period. The entire related lease payment is due at the end of the ten-month period. The journal entry to recognize the monthly accrual related to the
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45 votes
Blume Corporation leases equipment for a ten-month period. The entire related lease payment is due at the end of the ten-month period. The journal entry to recognize the monthly accrual related to the lease will include a debit to:

User Alexis Paques
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1 Answer

21 votes
21 votes

Answer: d. short-term lease expense.

Step-by-step explanation:

The debit has to go to an expense account to recognize that a lease expense is being incurred. The relevant account would be a short-term lease expense account because the lease is a short term lease as it is to last for less than a year.

The credit will go to an accrued lease account to recognize that it is a current liability because liabilities are credited when they increase.

User Shanmugapriyan
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