Financing and Operating Leases Journal Entries

Nick Palazzolo takes us on a deep dive into the intricacies of both financing and operating leases under the new leasing standards. With his characteristic enthusiasm, he explores the critical accounting shifts these standards demand, like the right-of-use asset and lease liability concepts that kicked in around 2018-2019. Nick clearly outlines journal entries from the perspective of both lessees and lessors, simplifying these often complex scenarios with practical examples. Whether discussing the differences between operating leases and financing leases via mnemonic devices or dissecting payment entries and their implications on assets and liabilities, this walkthrough is packed with actionable insights. Nick also tackles modifications, terminations of leases, and even delves into the subtleties dividing direct finance leases from sales type leases, ensuring a thorough grasp of the topic with lighthearted tangents that keep the energy buoyant throughout.