Lease Illustration #3
Same example: Journal entries, first period, lessor, gross approach. From a properly prepared amortization table:
1/1/x1 Lease inception
Lease receivable 109,040
Leased asset 90,000
Unearned interest revenue--leases 19,040
12/31/x1 End of first period
Cash 34,680
Unearned interest revenue--leases 9,000
Interest revenue 9,000
Lease receivable 34,680
Depreciation Expense is not recorded by lessor