Ryan Corp.enters into an agreement with Montgomery Corp.to lease some office space in town.There are currently a large number of vacant units which allowed Ryan Corp.to obtain favourable lease terms.The agreement called for payments of $150,000 per year for five years; however, given the large number of vacancies, Montgomery Corp.forgave the first year's lease payment.Prepare the journal entries for the five years of the lease.

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The Answer of Ryan Corp.enters into an agreement with Montgomery Corp.to lease some office space in town.There are currently a large number of vacant units which allowed Ryan Corp.to obtain favourable lease terms.The agreement called for payments of $150,000 per year for five years; however, given the large number of vacancies, Montgomery Corp.forgave the first year's lease payment.Prepare the journal entries for the five years of the lease.

Ryan CorpEnters into an Agreement with Montgomery Corp