Lease Type
Payment Frequency
📝 Lease Terms
years
$
%
$
💰 Initial Direct Costs & Adjustments
$
$
$
$
Leave 0 for automatic calculation
Lease Liability (Present Value)
$0
Total remaining lease payments discounted
Right-of-Use (ROU) Asset
$0
Liability + Direct Costs - Incentives
Total Lease Payments
$0
Undiscounted sum
Total Interest Expense
$0
Over lease term
📅 Lease Amortization Schedule
Period Payment Interest Expense Principal Reduction Remaining Liability ROU Amortization
Enter lease terms to calculate
📊 Journal Entry Summary (Initial Recognition)
📌 ASC 842 Lease Accounting Summary:
Lease Liability: Present value of future lease payments discounted at the incremental borrowing rate
ROU Asset: Lease liability + Initial direct costs + Prepaid payments - Lease incentives
Operating Lease: Straight-line expense recognition; ROU asset and liability amortized separately
Finance Lease: Front-loaded expense; interest and amortization recognized separately
Practical Expedients: Short-term leases (≤12 months) can be expensed as incurred
Key Disclosures: Maturity analysis, weighted-average discount rate, lease cost components
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