Asset Capitalization Explained with a Lease Example

Asset Capitalization Explained with a Lease Example

1. What is capitalization in accounting? How assets are capitalized 2. Capitalized right-of-use asset example 1: Capital/Finance lease Classification test 3. Capitalized right-of-use asset example 2: Operating lease 4. Summary To understand capitalization, start with...
Accrued Rent Accounting under ASC 842 Explained

Accrued Rent Accounting under ASC 842 Explained

1. What is accrued rent? Accrued rent vs. deferred rent 2. Accounting for accrued rent with journal entries Accounting for accrued rent under ASC 840 Accounting for accrued rent and deferred rent under ASC 842 3. Summary What is accrued rent Accrued rent is a...