In this lesson, Nick Palazzolo, CPA, demystifies the complexities of accounting for leases, drawing parallels to familiar experiences like leasing a car to simplify the material. He breaks down lease classifications, such as operating and financing leases, into plain English to provide a clearer understanding of the concepts. This lesson delves into the practical side of leases, discussing how to identify lease arrangement criteria, calculate the carrying amount of lease-related assets and liabilities, and prepare accurate journal entries for both the lessor and lessee. Not stopping there, Nick also tackles how to record a sale leaseback transaction and how to determine the lease income to be recognized in the income statement, ensuring all facets of leases are covered thoroughly.
Lesson: Leases Overview and Objectives
In this lesson, Nick Palazzolo, CPA, demystifies the complexities of accounting for leases, drawing parallels to familiar experiences like leasing a car to simplify the material. He breaks down lease classifications, such as operating and financing leases, into plain English to provide a clearer understanding of the concepts. This lesson delves into the practical side of leases, discussing how to identify lease arrangement criteria, calculate the carrying amount of lease-related assets and liabilities, and prepare accurate journal entries for both the lessor and lessee. Not stopping there, Nick also tackles how to record a sale leaseback transaction and how to determine the lease income to be recognized in the income statement, ensuring all facets of leases are covered thoroughly.
Updated: Oct. 20, 2021 Create an account