F4 - Accounting for Leases

Question 1

To record rent income (Lessor/Renter) - Operating Lease

Answer 1

Dr. Cash/Rent receivable

Cr. Rental income

Question 2

To record refundable deposit by the lessor/renter

Answer 2

Dr. Cash

Cr. Refundable deposit (liability account)

Question 3

To record nonrefundable deposit by lessor/renter

Answer 3

Dr. Cash

Cr. Unearned revenue

Question 4

To record rent expense over lease term (lessee/renter) - Operating Lease

Answer 4

Dr. Rent expense

Cr. Cash/Rent payable