Jacks Mining and Manufacturing Company (JMMC) leases from Emily Leasing Company three machines under the following operating lease terms:
• Machine 1: Lease period - 10 years, beginning April 1, 2005; lease peyments-$18,000 per year, payable in advance.
• Machine 2: Lease period - 10 years, beginning July 1, 2009, lease payments-$30,000 per year, payable in advance.
• Machine 3: Lease period - 15 years, beginning January 1, 2010, lease payments-$12,500 per year, payable in advance.
Required: Prepare the note to the 2011 financial statements that would be required to disclose the lease commitments of JMMC. JMMC's accounting period is a calendar year.