CPA Exam leases Simulation. Finance Lease Vs Operating Lease Vs Sales Type Lease.

[@AverageGolfing]

Great Explanation.

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@maxhall2731]

For Number 2, how come there was not a journal entry for amortization expense of the ROU on the lessee's side?

[@mohammedelattar2586]

Perfect explanation

[@AccountingLectures]

Glad you think so! Please take a took at my FAR resources: farhatlectures.pathwright.com/library/?category=CPA+Exam+FAR

[@danielgreen6984]

@@AccountingLectures

[@ckcaadil5878]

Thanks my lecturer .. i am beginner

[@AccountingLectures]

You are welcome. Please check my website for more resources such as PPT slides, multiple choice questions, trues/false and exercises. ✔farhatlectures.com/ ✔Instagram: @farhatlectures ✔ Linkedin: www.linkedin.com/in/professorfarhat/ ✔Facebook:@accountinglectures ✔Twitter: @farhatlectures 🎤Email: [e-mail]

[@TheMikeshinoda]

Professor Farhat - could you please explain as to why COGS, Sales Revenue was recognised in the 3rd Question.

[@MrPramodku]

I think, in the 3rd example, the Gain should have been recognized ?

[@vijayraj8717]

sir, why we are taking interest expense $77685 and lease liability $70186 here the entry would be dr interest exp $83600 and liability payable (principal) $64271

[@manumiku]

what is operating lease ?, is it the lease sale from MM to NMEG

[@mrd3994]

Do not under stand for question 3, do not recognize a gain for MM ?

[@mrd3994]

Can we combine first two entries to be: Dr Rou 2090000, Cr Leasing liability 1942129 and Cr cash 147871?