Lexus Company rents a copier from Heavenly Co on January 1, 2017. Under the terms of the agreement, Lexus Company will pay rentals of $7,000 per month for a 6-month period. Lexus Company will make these payments at the beginning of every month, beginning on January 1, 2017. Lexus Company elects to apply the exemption for short-term leases. That is, Lexus Company makes a policy election not to record the lease liability and the right-of-use asset. What journal entry will Lexus Company make each month to record the rental payments?

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The Answer of Lexus Company rents a copier from Heavenly Co on January 1, 2017. Under the terms of the agreement, Lexus Company will pay rentals of $7,000 per month for a 6-month period. Lexus Company will make these payments at the beginning of every month, beginning on January 1, 2017. Lexus Company elects to apply the exemption for short-term leases. That is, Lexus Company makes a policy election not to record the lease liability and the right-of-use asset. What journal entry will Lexus Company make each month to record the rental payments?

Lexus Company Rents a Copier from Heavenly Co on January