Lease Illustration #1
Journal entries, first period, lessor, net approach
From a properly prepared amortization table:
1/1/x1
Lease receivable 80,000 (PV MLP)
Leased asset 80,000
To record lease inception
12/31/x1
Cash 33,308
Interest revenue 9,600
Lease receivable 23,708
*Depreciation Expense is not recorded by lessor