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
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.
Thank you for creating this video
Thank you for this information
My pleasure
Great video.
Thanks!
Under 842, ROU Amortization is supposed to be straight lined - Not sure if I am misinterpreting your slide…? 6:25
The ROU asset is amortized as explained at 6:25 for operating leases. Straight-line is only used for finance leases.
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
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.
@@CPAHallTalk Thank you, Charles, for the lightning-fast detail!!!