if the lease includes HST paid on the total $ at the start of the lease, you need to code HST in the 1st intial booking (see below).Otherwise, HST should be accounted for when you make periodic lease pmts.
a) Dr. leased assets ***
Cr. leased liabilities *** (exclude any imputed interest ) it is 100% L/T liability in B/S.
b) Dr. interst exp. *** ( set up your own amortization schedule)
Dr. leased liabilty ***(principle)
Dr. HST ITC ***( note: not record this if HST was accounted at the onset of the lease)
Cr. cash ***
c) Dr. depreciation exp. ***
Cr. AA ***
a) Dr. leased assets ***
Cr. leased liabilities *** (exclude any imputed interest ) it is 100% L/T liability in B/S.
b) Dr. interst exp. *** ( set up your own amortization schedule)
Dr. leased liabilty ***(principle)
Dr. HST ITC ***( note: not record this if HST was accounted at the onset of the lease)
Cr. cash ***
c) Dr. depreciation exp. ***
Cr. AA ***