Lease Illustration #4
Illustration #4: Journal entries, first period, lessor, gross approach From a properly prepared amortization table:
1/1/x1 Lease inception
Lease receivable 109,507
Leased asset 90,000
Unearned interest revenue--leases 19,507
12/31/x1 End of first period
Cash 33,169
Unearned interest revenue--leases 9,000
Interest revenue 9,000
Lease receivable 33,169
Depreciation Expense is not recorded by lessor