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nad_usa
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Joined: 29 Dec 2008
Location: Algeria
Online Status: Offline
Posts: 10

Posted: 20 Sep 2010 at 18:07 \| IP Logged

Does any one know what the JE would be for the lease sale back when majority of power remain (more than 90%) and also when middle (10-90%).

Thanks

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PFgirl
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Joined: 28 Sep 2009
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Posts: 44

Posted: 24 Sep 2010 at 16:56 \| IP Logged

For majority of power remain
Debit: Cash
     Credit: Assets
                Deferred gain
Debit: Leased assets
      Credit: Leased obligation
If capital lease, amortize deferred gain into depreciation expense:
Debit: Deferred gain
      Credit: Depreciation expense
If operation lease (when lease back in the last 25% of asset's useful life), amortize deferred gain into rental expense
Debit: Deferred gain
      Credit: Rental expense

For minor, only operation lease only
Debit: Cash
CreditL Assets
          Gain

Debit: Rental expense
Credit: cash/payable

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