- This topic has 1 reply, 1 voice, and was last updated 8 years ago by
.
- Posts
A little confused – is it not just:
Dr: Expense A/C (SPL) 1,500
Cr: Lease Payable A/C (SFP) 1,500SPL for year 20XX:
Lease expense (1,500)SFP @ Y/E:
Liabilities:
Lease Payable 1,500Why would “… of which $500 would be released over the remaining three years of the lease.”?
Sorted – I think. A little long winded 🙂
Year 1:
Dr. SPL 1,500
Cr. Lease Payable 1,500
SFP @ y/e 1:
Liability – Lease Payable 1,500Year 2:
Dr. SPL 1,500
Cr. Lease Payable 1,500
SFP after transaction:
Liability – Lease Payable 3,000Dr. Lease Payable 2,000
Cr. Bank 2,000
SFP @ y/e 2:
Liability – Lease Payable 1,000Year 3:
Dr. SPL 1,500
Cr. Lease Payable 1,500
SFP after transaction:
Liability – Lease Payable 2,500Dr. Lease Payable 2,000
Cr. Bank 2,000
SFP @ y/e 3:
Liability – Lease Payable 500Year 4:
Dr. SPL 1,500
Cr. Lease Payable 1,500
SFP after transaction:
Liability – Lease Payable 2,000Dr. Lease Payable 2,000
Cr. Bank 2,000
SFP @ y/e 4:
Liability – Lease Payable nil
- You must be logged in to reply to this topic.