F5.2 Leases, Liabilities, and Bonds

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 )

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salacas

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F5.2 Leases, Liabilities, and Bonds

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F5.2 Leases, Liabilities, and Bonds

Updated

2013-07-19T22:49:12Z

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