On January 1, 2017, Maranto Company signed a lease agreement that requires monthly payments of $2500 at the beginning of every month for two years. Maranto Company paid $2500 on January 1, 2017. This is an operating lease. What journal entry is required by Maranto Company on January 1, 2017?
A) debit Leased Asset $2500 and credit Lease Obligation $2500
B) debit Lease Expense $2500 and credit Lease Obligation $2500
C) debit Rent Expense $2500 and credit Rent Payable $2500
D) debit Rent Expense $2500 and credit Cash $2500
Correct Answer:
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