Which of the following is an appropriate journal entry for the initial recognition by a lessee of an operating lease arrangement?
A) DR Leased asset: CR Lease liability
B) DR Lease rental expense: CR Cash/accounts payable
C) DR Leased asset: CR Cash/accounts payable
D) DR Lease asset: CR Lease interest expense

Question

Quizplus · Accepted Answer

In an operating lease, the lessee records lease rental expense as it incurs the lease payments, typically debiting lease rental expense and crediting cash or accounts payable.

Which of the Following Is an Appropriate Journal Entry for the Initial