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Categories AgExpert Accounting AgExpert Analyst
Created by AgExpert Support
Created on Jan 22, 2018

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Just leased a building and wondering how to enter it. Here are all the specs: Lease term is 27 months
Building was $97,000, residual is 10% = $9700, financed amount = $87,300.
Annual percentage rate to end of term 5.45% = cost of borrowing of $3457.20. Total obligation of Lessee = $100,457.20
Payment in 2017 = $30,252.40 + $1512.62 GST(same amount for 2018 and 2019) Purchase option in 2020 is $9700 + $485 GST

  • ADMIN RESPONSE
    Feb 10, 2025

    You may want to check with your accountant about whether this is to be treated as a capital lease or an operating lease. My guess is that it will be a capital lease in which case it would be entered like any new capital asset purchase and you treat the lease as a loan.

    Check out this article from our knowledge base, it shows you how to post both types of leases.

    http://community.fccsoftwar...

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