Hi - Hopefully an easy question. How does the balance sheet balance after the first year of a capital lease? The depreciation of the capital lease asset and the yearly lease obligation are different, which causes the ending capital lease asset and capital lease liability to differ. Thanks for your help.
Sale-leaseback - Capital Lease Treatment
Answers
This is a good explaination:
https://www.accountingtools.com/articles/deferred-rent-accounting.html
1
Wayne, thank you for your response it was very helpful.