Reference no: EM132637746

Question - Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. The contract speci?es that Lucky Fisherman's boats will be kept in identified slips in the marina. However, Warren has the right to shift the boats to other slips within its marina at its discretion, subject to the requirement to provide 457 foot slips per boat for a three year period. Warren frequently rearranges its customers' boats to meet the needs of new contracts. Costs of reallocating space is low relative to the benefits of being able to accommodate more customers and their speci?c requests. Lucky Fisherman Fleet paid $18,000 on March 1, 2021, for the first year's accommodations. The market rate of interest is 5%.

Required - Prepare the appropriate entry for Lucky Fisherman Fleet at March 1, the commencement of the agreement.