JoJo's Bizarre Accounting: ASC 842

Listen up! Your off-balance sheet leases are history. Witness the power of the ASC

842 standard! First, we recognize the Right-of-Use Asset and the Lease Liability.

Debit and Credit, simultaneously! The value is the present value of future payments,

discounted by your incremental borrowing rate, exactly! But wait! The subsequent entries

are where the real battle begins! Observe the amortization schedule carefully! For operating leases,

record a single lease expense. You must amortize that asset every single period!

Debit Lease Expense! Credit Cash and the Right-of-Use Asset! The liability reduces every single month!

Your audit trail is now invincible. Compliance is the ultimate Stand! To be continued,