Leases J/E Flashcards
1
Q
Manufacturer/Dealer lease, to write lease into books
A
Dr. ROU - ASSET
Dr. Insurance (executory cost)
Cr.LL
Cr. Cash
2
Q
Depreciation
A
*time of lease
Dr. Dep exp
Cr. Accum dep
3
Q
Interest Exp
A
Dr. Interest exp
Cr. LL
4
Q
Jan 1 J/E
A
Dr. Interest Expense
Dr. Lease Liab
Cr. Cash
5
Q
IF NO DEC 31 Y/E (ex. may 31)
A
Dr. ROU Asset
Dr. Insurance exp (5/12)
Dr. Prepaid insurance (7/12)
Cr. LL
Cr. Cash
6
Q
IF NO Y?E DEC 31 but MAY 31, Dec 31 j/e
A
Dr. Insurance Expense 7/12
Cr. Prepaid Inurance 7/12
