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Rent expense

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I am trying to help my daughter (at least look smart) with her accounting homework. She has done this on her own already however, I want to know the answer to confirm her answer (be her hero too!). Thanks!!

Please find attached an XCEL file containing the financial statement.

Jimbo Limited
Statement of Income
Year Ended December 31

(in millions) 2007 2006
Revenues:
Freight $3,471.90 $3,496.70
Other 193.7 201.9
Total Revenues 3665.6 3698.6
Operating Expenses* and other 3169.6 3326.1
Net Income 496 372.5
*includes rent expense of $19 million and $16 million for 2007, 2006
respectivily.

a) Prepare entries for the 3 types of transactions that might have
recorded the rent expense for 2007.
Immediately below each entry, briefly describe the effect(s), if any,
each of these entries would have on the balance sheet.

Entry#1

Account Titles and Explanation Debit Credit

Effect of Entry#1, if any, on the balance sheet:

Entry#2

Account Titles and Explanation Debit Credit

Effect of Entry#2, if any, on the balance sheet:

Entry#3

Account Titles and Explanation Debit Credit

Effect of Entry#3, if any, on the balance sheet:

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Solution Summary

The solution explains three types of transactions that would appear as rent expense.

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