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[Debit] Asset under finance lease xxxx
[Credit] Liability under finance lease xxxx
And after that asset will be adjusted against depreciation while liability will be adjusted against lease payment till the end of term.
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What is THE journal entry to record paid in capital?
Debit cash / bankCredit paid in capital
How do you record Obligations under capital lease contracts?
When you book the capital lease, record the asset at its fair market value or the present value of minimum lease payments, whichever is less. The capital lease obligation is recorded at the same amount. Minimum lease payments include all rental payments required during the term of the lease plus any residual value guaranteed by the lessee. They also include any payment the lessee must make for not renewing or extending the lease, including a requirement to purchase the asset. They do not include any guarantee of the lessor's debt by the lessee, contingent rentals, or any penalty for which the term of the lease has been extended. They also do not include the portion of the rent payments which represent executory costs, such as insurance, taxes, and maintenance, and any related profit. Sources: SFAS No. 13; RIA Checkpoint
A lease of an asset for its entire productive life?
Lease which is done for the entire productive life of an asset is called "Capital lease or finance lease".
What is the journal entry to record initial called-up equity share capital?
Called up share capital a/c Dr. To share Forfiture A/c To Unpaid Call Amount A/c
In what circumstances is a capital lease a better alternative to an operating lease and under what circumstances is a clapital lease a better alternative than buying an asset?
1) When you do not need a current tax deduction, a capital works better, you can take depreciation over the term of the lease. 2) You buy a appreciating asset and lease a depreciating asset, A capital lease is better with a depreciating asset. http://www.equipmentleasing101.com
What is THE journal entry to record paid in capital?
Debit cash / bankCredit paid in capital
How do you pass an entry to record increase capital?
[Debit] Cash / bank [Credit] Share capital
What is journal entry to record out of pocket business expense?
debit business expensescredit owner capital account
What is lease obligation?
it is lease paid on capital invested
Capital lease and financing lease are the same thing?
Finance lease and operating lease are different things.
What is capitalized lease obligations?
Capitalized lease obligations refer to lease agreements where the lessee records the leased asset as a capital lease on their financial statements. This means the lessee treats the leased asset as if it were purchased with a loan, and includes the lease payments as both an asset and a liability on their balance sheet.
How do you make entry for capital?
i dont know. How DO you make a entry for a capital.
How do you record Obligations under capital lease contracts?
When you book the capital lease, record the asset at its fair market value or the present value of minimum lease payments, whichever is less. The capital lease obligation is recorded at the same amount. Minimum lease payments include all rental payments required during the term of the lease plus any residual value guaranteed by the lessee. They also include any payment the lessee must make for not renewing or extending the lease, including a requirement to purchase the asset. They do not include any guarantee of the lessor's debt by the lessee, contingent rentals, or any penalty for which the term of the lease has been extended. They also do not include the portion of the rent payments which represent executory costs, such as insurance, taxes, and maintenance, and any related profit. Sources: SFAS No. 13; RIA Checkpoint
How do you record a common stock journal entry in exchange for non cash?
[Debit] Asset / goods in kind [Credit] Share Capital
A lease of an asset for its entire productive life?
Lease which is done for the entire productive life of an asset is called "Capital lease or finance lease".
How do you record a journal entry to admit of a partner?
Debit cash / bank / asset in kind xxxx credit partner capital account xxxx
How can an accountant determine whether a lease is a capital lease or operating lease?
If a copy of the lease agreement is made available to the accountant, this should be easily determined.
