Leased Equipment Bookkeeping Entry
I have recently launched a small business and acquired a sign through a lease purchase agreement.
As part of the agreement, I made an initial payment of $1000.00, leaving a remaining balance of $7400.
The lease terms require monthly payments of $226.00.
I would like to understand how to record these transactions in my bookkeeping system and how the depreciation of the sign will be accounted for.
Additionally, I am seeking guidance on the proper bookkeeping entries to accurately reflect these financial transactions and ensure compliance with accounting standards.