Questions: Blume Corporation leases equipment for a ten-month period. The entire related lease payment is due at the end of the ten-month period. The journal entry to recognize the monthly accrual related to the lease will include a debit to: Multiple Choice accrued lease expense. leased equipment. short-term lease expense. interest expense.

The answer is the first one: accrued lease expense.

Explanation for each option:

1. Accrued lease expense: This is the correct answer. Since the lease payment is due at the end of the ten-month period, Blume Corporation needs to recognize the expense incurred each month. The monthly accrual would be recorded as a debit to accrued lease expense and a credit to a liability account (such as lease payable or accrued liabilities).

2. Leased equipment: This is incorrect. Leased equipment would be debited if the lease were a capital lease (finance lease) and the equipment were being capitalized. However, the question implies an operating lease where the expense is recognized periodically.

3. Short-term lease expense: This is incorrect. While lease expense is recognized, the term "short-term lease expense" is not typically used in accounting entries. The correct term for the monthly recognition would be "lease expense" or "accrued lease expense."

4. Interest expense: This is incorrect. Interest expense would be relevant if the lease were a finance lease and there were an interest component to the lease payments. However, the question pertains to the monthly accrual of lease expense, not interest.

Summary: The journal entry to recognize the monthly accrual related to the lease will include a debit to accrued lease expense.