Leases Explained: A Guide to Lease Types and Journal Entries

[@MrGAM14]

Thank you for creating this video

[@MariaMira-v5z]

Thank you for this information

[@CPAHallTalk]

My pleasure

[@Corgidad2222]

Great video.

[@CPAHallTalk]

Thanks!

[@michael_083]

Under 842, ROU Amortization is supposed to be straight lined - Not sure if I am misinterpreting your slide…? 6:25

[@CPAHallTalk]

The ROU asset is amortized as explained at 6:25 for operating leases. Straight-line is only used for finance leases.

[@kimsadowski4058]

Hi Charles. Do you have an example set of financials for this video that you could also talk about, as if these leases were all the company had on the books? I would like to see where they are in the Chart of Accounts, best case scenario, and I am sure order matters on the Balance Sheet. Yes, I do ask for the moon! Kindest, Kim

[@CPAHallTalk]

Kim, I’m sorry, but I don’t. I made up these numbers without reference to a particular entity. The chart of accounts for finance and operating leases would include: (1) ROU asset, (2) ROU short term liability, (2) ROU long term liability, (3) interest expense, (4) ROU amortization, and (5) lease expense, (6) ROU accumulated amortization.

[@kimsadowski4058]

@@CPAHallTalk Thank you, Charles, for the lightning-fast detail!!!