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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.
What else can I help you with?
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
How should the capital assets of a capital lease be recorded in the capital projects fund?
Well, darling, the capital assets acquired through a capital lease should be recorded as both an expenditure and an other financing source in the capital projects fund. The amount recorded as an expenditure should be equal to the present value of the lease payments, and the same amount should be recorded as an other financing source to reflect the lease obligation. Just make sure to dot your i's and cross your t's, honey.
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
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.
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 should the capital assets of a capital lease be recorded in the capital projects fund?
Well, darling, the capital assets acquired through a capital lease should be recorded as both an expenditure and an other financing source in the capital projects fund. The amount recorded as an expenditure should be equal to the present value of the lease payments, and the same amount should be recorded as an other financing source to reflect the lease obligation. Just make sure to dot your i's and cross your t's, honey.
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.
