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Golden Valley Corporation is a cash basis taxpayer. The company currently rents a warehouse space on...

Golden Valley Corporation is a cash basis taxpayer. The company currently rents a warehouse space on a 30-day lease. The company anticipates renting the warehouse for the next 18 months, but is under no obligation to do so. On December 15, 2019, the company prepays the first three months rent for 2020 for a total cost of $15,000.    Prepare the journal entry for the December 15th cash payment of $15,000.

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Answer #1
Date Accounts Title and Description Debit Credit
Dec 15, 2019 Lease Rentals 15,000
Cash/Bank 15,000
(To record lease rentals for next 3 months)

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