Exercise 10 – Accrued Expenses Entity D acquired a piece of land on April 1, 2020. The purchase price was reduced by a credit for the real property taxes accrued during the year. Entity D records real property taxes at each month-end by adjusting the prepaid tax or tax payable account as appropriate. On May 1, 2020, Entity D paid the first of two equal installments of P72,000 for real property taxes. Required: What is the entry to record the payment on May 1?

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.