Question on how to book a lease

[sfdbooks]

Hi all,

I have a client who has recently entered into a lease agreement. I am having a complete brain faint on how to book it. I have an email out to him as to what the lease is for. If I remember right, it makes a difference if he is just renting it or if he will end up owning it after.

I know I don't have all the information, but can you help me determine how to record this lease? Or if there is some other information that I am not thinking of that I need?

Thanks!

[sfdbooks]

OK, I have a bit more info. It is a lease where they will own the equipment once it is up.

[Rebecka Melson]

Here is a link that explains how to book an entry for leased equipment.

It really just depends on what kind of equipment it is and how much it costs and whether it needs to be considered an asset or not. If it's $25k piece of equipment then it should be booked as an asset, if it's a $20/mo postage meter then I would just expense it to Equipment Rentals or Office Costs.

[sfdbooks]

Thanks Rebecka, your link help tremendously!