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We just signed a new lease, how do we account for this?

We just signed a new lease on a warehouse for our manufacturing company. How should we/ do we account for this?

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Ian Bensman
Director, Gametheory
Posted on Oct. 14, 2010

The simplest way is to treat the new lease as an operating lease and expense the monthly payments. The accounting entry to the income statement would debit rent expense and credit cash.

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