On January 1,2013,Jo Corporation Leased Some Machinery for Two Years,paying

Multiple Choice

On January 1,2013,Jo Corporation leased some machinery for two years,paying $7,500 per year each December 31.The lease is considered to be an operating lease.How would the company record this transaction?

A) Debit Rental Expense for $7,500 and credit Cash for $7,500.
B) Debit Rental Expense for $15,000 and credit Cash for $15,000.
C) Debit Leased Assets for $7,500 and credit Lease Liability for $7,500.
D) Debit Leased Assets for $15,000 and credit Lease Liability for $15,000.
E) Debit Interest Expense $7,500 and credit Cash for $7,500.