Outline the steps you would take for lease accounting, considering different instances. For example:

Step 1: Identify the type of lease

(List what to consider in determining the type of lease)

Step 2: Lease amortization schedule

(Include any formulas, notes on how to set it up)

Step 3: Journal entries

(include differences based on when the payment is due, at the beginning of the period (annuity due) or at the end of the month (ordinary annuity), for each category; consider also differences in for selling profit; may need to list different journal entries for each category, or note where there would be any differences. The categories A-D below are a suggestion; you may add more categories or separate them out in any way.)

A) For lessee, in a financing lease:

B) For lessee, in an operating lease:

C) For lessor, in a financing lease:

D) For lessor in an operating lease: