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F5.2 Leases, Liabilities, and Bonds
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Lessee-Person who is leasing from Lessor. Entry to record Lease Rent Expense
The lessee records rent expense over the lease term, usually on a straight line basis unless other methods are warrented:
Rent expense DR.
Cash/rent payable CR.
How should the leasehold improvements be depreciated (amortized)?
Over the lesser of:
Lease life
Asset/improvement life
Entry to record free or discounted rent
rent expense dr.
rent payable cr.
Entry to record regular rent after discount or free period is over
Rent expense DR.
Rent payable DR.
Cash/rent payable CR ( this part is added after the free period is over )
Author
salacas
ID
227614
Card Set
F5.2 Leases, Liabilities, and Bonds
Description
F5.2 Leases, Liabilities, and Bonds
Updated
2013-07-19T22:49:12Z
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