October 30, 2016 admin

Deferred Income—Sales-Type Leases

Assets

DEFERRED INCOME—SALES-TYPE LEASES ASSET ACCOUNT
1640

ACCOUNT EXPLANATION
Deferred Income on Sales-Type Leases.
TRANSACTIONS
  Jrnl. Dr. Cr.
  New car leased under a sales-type lease NV
    Investment in Sales-Type Leases 1630
      Sales—All Fleet Cars 3350
      Deferred Income—Sales-Type Leases 1640
             
  Monthly amortization of deferred income on sales-type leases SE
    Deferred Income—Sales-Type Leases 1640
      Leased Vehicle Income Wholesale—Maintenance Lease—Car 5301
COMMENTS
  • Deferred income should be amortized at an amount which will result in a constant rate of return on the net investment in the lease.