On July 1,2014,Biplane Aviation leased two company jets from SeeBee Aircraft for an initial period of 12 months with a provision for a continuation on a month-to-month basis.The lease is properly classified as an operating lease.Lease payments are to be made as follows:

After the first year,the rent continues at $6,000 per month.Provide the entries required to record the lease payments for the first year on the books of
(1)Biplane Aviation.
(2)SeeBee Aircraft.

Question

On July 1,2014,Biplane Aviation leased two company jets from SeeBee Aircraft for an initial period of 12 months with a provision for a continuation on a month-to-month basis.The lease is properly classified as an operating lease.Lease payments are to be made as follows:
  
After the first year,the rent continues at $6,000 per month.Provide the entries required to record the lease payments for the first year on the books of
(1)Biplane Aviation.
(2)SeeBee Aircraft.

Quizplus · Accepted Answer

The Answer of On July 1,2014,Biplane Aviation leased two company jets from SeeBee Aircraft for an initial period of 12 months with a provision for a continuation on a month-to-month basis.The lease is properly classified as an operating lease.Lease payments are to be made as follows:
  
After the first year,the rent continues at $6,000 per month.Provide the entries required to record the lease payments for the first year on the books of
(1)Biplane Aviation.
(2)SeeBee Aircraft.

On July 1,2014,Biplane Aviation Leased Two Company Jets from SeeBee