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Cardigan Corp. agrees to lease a store in a mall and open a t-shirt shop....

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Accounting

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Cardigan Corp. agrees to lease a store in a mall and open a t-shirt shop. On January 2, 2020, the company pays a nonrefundable $28,000 deposit to secure the store and agrees to a lease amount of $14,000 per month for two years. Journalize the initial lease deposit, the first monthly lease payment, and the December 31 year-end adjustment of the $28,000 deposit. Explanations are not required. Would Cardigan Corp. report the lease information in the notes to the financial statements? Why or why not? Journalize the initial lease deposit. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit Jan. 2 Now record the payment of the first month's lease. Journal Entry Date Accounts Debit Credit Jan. 2 Now record the year-end adjustment of the deposit. Journal Entry Date Accounts Debit Credit

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