Chapter 15 Leases

TeacherChapter 15 focuses on accounting for leases from the perspective of both the lessor and the lessee.  As discussed in Chapter 15, a lease can be classified as either an operating lease or a capital lease.

An operating lease is basic rental of property between two parties.

A capital lease, on the other hand is one where the substance is a transfer of property from the lessor to the lessee with the lessor receiving a long-term receivable for the lease payments, and the lessee receiving a leased asset and accompanying lease payable.  The capital lease, with its many nuances is the main focus of Chapter 15.  For a comprehensive guide to the many rules related to leases, go here.

(Note:  To view the lecture material on an IOS device, you will need to download the Articulate Mobile Player from the App Store):

Leases:  Part 1 – In General (9:31 minutes);  PDF Handout

Leases:  Part 2 – Capital Leases (26:11); PDF Handout

Assigned Exercises:
Exercise 15-1 (2:17 minutes); PDF Handout
Exercise 15-6 (8:16 minutes); PDF Handout
Exercise 15-7 (6:26 minutes); PDF Handout
Exercise 15-15 (10:27 minutes); PDF Handout
Exercise 15-17 (7:28 minutes); PDF Handout
Exercise 15-18 (6:50 minutes); PDF Handout
Exercise 15-19 (5:40 minutes); PDF Handout
Exercise 15-21 (9:16 minutes); PDF Handout
Exercise 15-24 (4:33 minutes); PDF Handout

Assigned Problems:
Problem 15-2 (3:32 minutes); PDF Handout
Problem 15-3 (8:26 minutes); PDF Handout
Problem 15-8 (10:55 minutes); PDF Handout
Problem 15-9 (12:30 minutes); PDF Handout
Problem 15-11 (10:18 minutes); PDF Handout