The journal entry for recording payment for the short-term lease of a fixed asset would
A)debit the fixed asset and credit Cash
B)debit Rent Expense and credit Cash
C)debit a liability and credit Cash
D)be a memo entry only

Question

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The payment for a short-term lease of a fixed asset is a rent expense, so you would debit Rent Expense and credit Cash to record the transaction. A would not be correct because it would increase the value of the fixed asset, which is not appropriate for a short-term lease. C would not be correct because there is no liability involved. D would not be correct because a journal entry is necessary to properly record the transaction.

The Journal Entry for Recording Payment for the Short-Term Lease