Question
I need help with the journal entries to record an operating lease. I made an amortization schedule but can not upload the document. Here are
I need help with the journal entries to record an operating lease. I made an amortization schedule but can not upload the document.
Here are the account titles and journal entries that I think I need I am just unsure.
1/1/x2
191 Right of Use Asset-Lease-Building313,145
410Lease Payable-Building313,145
To record right of use asset and related liability at PV of the lease payment.
563 Service Costs-Indirect-Lease Expense-Shop Building32,500
602 Selling & Admin-Lease Expense-Office Building6,500
101Cash39,000
708 Amortization of Right-of-use Assets24,607
191 Right of Use Asset-Lease-Building24,607
To record Amortization
Office Lease Year 2 Balance $313,145.00 Rate 5.250% Term 10 Payment $39,000.00
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