John Jackson Obtained a Ten-Year Sublease on a Busy Corner

Essay

John Jackson obtained a ten-year sublease on a busy corner to open a used car business.To obtain the sublease,he had to pay $14,000 to the current tenant,who had 12 years to go on his lease.The annual cost of the lease is $18,000.In addition to paying for the sublease,Bob paid $10,000 to pave the lot.The paving will have no residual value after its useful life of ten years.Prepare entries in journal form to record the following (omit explanations):
a.The payment for the sublease
b.The payment for the paving
c.The lease payment for the first year
d.The expense,if any,associated with the sublease for the first year
e.The expense,if any,associated with the paving,using the straight-line method for the first year