On July 1, 2004, Harper Company signed a contract to lease space in a building for 20 years. The lease contract calls for annual (prepaid) rental payments of $90,000 on each July 1 throughout the life of the lease and for the lessee to pay for all additions and improvements to the leased property. On June 25, 2009, Harper decides to sublease the space to Bosio & Associates for the remaining 15 years of the lease-Bosio pays $220,000 to Harper for the right to sublease and it agrees to assume the obligation to pay the $90,000 annual rent to the building owner beginning July 1, 2009. After taking possession of the leased space, Bosio pays for improving the office portion of the leased space at a $150,000 cost. The improvements are paid for on July 5, 2009, and are estimated to have a useful life equal to the 21 years remaining in the life of the building.
Prepare Bosio's year-end adjusting entries required at December 31, 2009, to record the following (Round your answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response):
(a) To amortize the $220,000 cost of the sublease.
Date General Journal Debit Credit
Dec. 31
(b) To amortize the office improvements.
Date General Journal Debit Credit
Dec. 31
(c) To record rent expense.
Date General Journal Debit Credit
Dec. 31