If a company made the following journal entry what type of lease do they have?

Question

If a company made the following journal entry  what type of lease do they have?

Quizplus · Accepted Answer

The journal entry code provided does not provide enough information to accurately determine the type of lease. However, operating leases are typically recorded with a straight-line rent expense while capital leases and finance leases may require additional journal entries for amortization and interest expense. Therefore, the use of a simple journal entry code suggests an operating lease.

If a Company Made the Following Journal Entry What