getting a new sprayer on a lease agreement. Dealer is taking old sprayer in on trade, but on the lease agreement they don't show it as a trade in they show the dollar value of the trade in as the first lease payment. plus had to cut a cheque for the gst on first payment. How do you record all that ? So what I did was C- the old sprayer, EX to Machinery Lease.
Hi Jody! I think you did that one exactly right. You disposed of the old sprayer appropriately and by offsetting against expense you have recorded the "first" payment on the new lease agreement. If you're still feeling a little shaky about the entry, just make sure to flag it for your accountant to review at year-end.