L37
ActiveEssex Court Condominium - Apartment Number B1-1 Property Regime
Flagged for review: Rent-free first period and stepped first payment — verify against the executed lease.
Lease terms
- Entity
- Beckenhauer Construction (BC)
- Lessor
- WLGHQ, LLC
- Asset class
- Real Property
- Asset category
- Commercial office space
- Asset ID / serial
- Apartment Number B1-1 · Approximately 5,250 rentable square feet of commercial office space in the Condominium Unit, as well as the use of Common Areas
- Commencement
- Apr 15, 2026
- Lease end
- Mar 15, 2031
- Rent commencement
- Apr 15, 2026
- Payment timing
- Advance · monthly
- Lease term
- 60 base periods
Measurement inputs
- Discount rate
- 3% annual (0.25% monthly)
- Rate basis
- Imported from ROU-01 workbook (template cell J24).
- Useful life
- 360 months
- Fair value
- Not provided
- Initial direct costs
- $0.00
- Prepayment
- $0.00
- Lease incentive
- $0.00
- Undiscounted payments
- $705,182.60
Classification — ASC 842-10-25-2
Recorded classification: (manual override — Classification imported from the ROU-01 workbook.)
The engine evaluation (indeterminate) differs from the recorded classification (operating).
✗
(a) Ownership transfers by end of term
Criterion not met (judgement).
✗
(b) Purchase option reasonably certain
Criterion not met (judgement).
✗
(c) Lease term is a major part of useful life
Lease term 60mo / useful life 360mo = 16.7% (guideline 75%).
?
(d) PV of payments is substantially all of fair value
Fair value of the underlying asset is required but not provided.
✗
(e) Specialized asset with no alternative use
Criterion not met (judgement).
Lease status
Initial measurement — ASC 842-20-30
- PV of lease payments
- $654,145.19
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $654,145.19
- Lease liability
- $654,145.19
Initial journal entry
Posted Apr 15, 2026
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Operating Leases | Recognize ROU asset at commencement | $654,145.19 | |
| Operating Lease Liability | Recognize lease liability | $654,145.19 | |
| In balance | $654,145.19 | $654,145.19 | |
Amortization schedule
Operating lease: single straight-line lease cost; ROU amortization is the residual.
| # | Date | Payment | Liability begin | Interest | Liability end | ROU begin | ROU amort. | ROU end | Lease expense | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Apr 15, 2026 | $0.00 | $654,145.19 | $1,635.36 | $655,780.55 | $654,145.19 | $10,117.68 | $644,027.51 | $11,753.04 | |
| 2 | May 15, 2026 | $16,734.38 | $655,780.55 | $1,597.62 | $640,643.79 | $644,027.51 | $10,155.42 | $633,872.09 | $11,753.04 | |
| 3 | Jun 15, 2026 | $11,156.25 | $640,643.79 | $1,573.72 | $631,061.26 | $633,872.09 | $10,179.32 | $623,692.77 | $11,753.04 | |
| 4 | Jul 15, 2026 | $11,156.25 | $631,061.26 | $1,549.76 | $621,454.77 | $623,692.77 | $10,203.28 | $613,489.49 | $11,753.04 | |
| 5 | Aug 15, 2026 | $11,156.25 | $621,454.77 | $1,525.75 | $611,824.27 | $613,489.49 | $10,227.29 | $603,262.20 | $11,753.04 | |
| 6 | Sep 15, 2026 | $11,156.25 | $611,824.27 | $1,501.67 | $602,169.69 | $603,262.20 | $10,251.37 | $593,010.83 | $11,753.04 | |
| 7 | Oct 15, 2026 | $11,156.25 | $602,169.69 | $1,477.53 | $592,490.97 | $593,010.83 | $10,275.51 | $582,735.32 | $11,753.04 | |
| 8 | Nov 15, 2026 | $11,156.25 | $592,490.97 | $1,453.34 | $582,788.06 | $582,735.32 | $10,299.70 | $572,435.62 | $11,753.04 | |
| 9 | Dec 15, 2026 | $11,156.25 | $582,788.06 | $1,429.08 | $573,060.89 | $572,435.62 | $10,323.96 | $562,111.66 | $11,753.04 | |
| 10 | Jan 15, 2027 | $11,156.25 | $573,060.89 | $1,404.76 | $563,309.40 | $562,111.66 | $10,348.28 | $551,763.38 | $11,753.04 | |
| 11 | Feb 15, 2027 | $11,156.25 | $563,309.40 | $1,380.38 | $553,533.53 | $551,763.38 | $10,372.66 | $541,390.72 | $11,753.04 | |
| 12 | Mar 15, 2027 | $11,156.25 | $553,533.53 | $1,355.94 | $543,733.22 | $541,390.72 | $10,397.10 | $530,993.62 | $11,753.04 | |
| 13 | Apr 15, 2027 | $11,490.94 | $543,733.22 | $1,330.61 | $533,572.89 | $530,993.62 | $10,422.43 | $520,571.19 | $11,753.04 | |
| 14 | May 15, 2027 | $11,490.94 | $533,572.89 | $1,305.20 | $523,387.15 | $520,571.19 | $10,447.84 | $510,123.35 | $11,753.04 | |
| 15 | Jun 15, 2027 | $11,490.94 | $523,387.15 | $1,279.74 | $513,175.95 | $510,123.35 | $10,473.30 | $499,650.05 | $11,753.04 | |
| 16 | Jul 15, 2027 | $11,490.94 | $513,175.95 | $1,254.21 | $502,939.22 | $499,650.05 | $10,498.83 | $489,151.22 | $11,753.04 | |
| 17 | Aug 15, 2027 | $11,490.94 | $502,939.22 | $1,228.62 | $492,676.90 | $489,151.22 | $10,524.42 | $478,626.80 | $11,753.04 | |
| 18 | Sep 15, 2027 | $11,490.94 | $492,676.90 | $1,202.96 | $482,388.92 | $478,626.80 | $10,550.08 | $468,076.72 | $11,753.04 | |
| 19 | Oct 15, 2027 | $11,490.94 | $482,388.92 | $1,177.24 | $472,075.22 | $468,076.72 | $10,575.80 | $457,500.92 | $11,753.04 | |
| 20 | Nov 15, 2027 | $11,490.94 | $472,075.22 | $1,151.46 | $461,735.74 | $457,500.92 | $10,601.58 | $446,899.34 | $11,753.04 | |
| 21 | Dec 15, 2027 | $11,490.94 | $461,735.74 | $1,125.61 | $451,370.41 | $446,899.34 | $10,627.43 | $436,271.91 | $11,753.04 | |
| 22 | Jan 15, 2028 | $11,490.94 | $451,370.41 | $1,099.70 | $440,979.17 | $436,271.91 | $10,653.34 | $425,618.57 | $11,753.04 | |
| 23 | Feb 15, 2028 | $11,490.94 | $440,979.17 | $1,073.72 | $430,561.95 | $425,618.57 | $10,679.32 | $414,939.25 | $11,753.04 | |
| 24 | Mar 15, 2028 | $11,490.94 | $430,561.95 | $1,047.68 | $420,118.69 | $414,939.25 | $10,705.36 | $404,233.89 | $11,753.04 | |
| 25 | Apr 15, 2028 | $11,835.67 | $420,118.69 | $1,020.71 | $409,303.73 | $404,233.89 | $10,732.33 | $393,501.56 | $11,753.04 | |
| 26 | May 15, 2028 | $11,835.67 | $409,303.73 | $993.67 | $398,461.73 | $393,501.56 | $10,759.37 | $382,742.19 | $11,753.04 | |
| 27 | Jun 15, 2028 | $11,835.67 | $398,461.73 | $966.57 | $387,592.63 | $382,742.19 | $10,786.47 | $371,955.72 | $11,753.04 | |
| 28 | Jul 15, 2028 | $11,835.67 | $387,592.63 | $939.39 | $376,696.35 | $371,955.72 | $10,813.65 | $361,142.07 | $11,753.04 | |
| 29 | Aug 15, 2028 | $11,835.67 | $376,696.35 | $912.15 | $365,772.83 | $361,142.07 | $10,840.89 | $350,301.18 | $11,753.04 | |
| 30 | Sep 15, 2028 | $11,835.67 | $365,772.83 | $884.84 | $354,822.00 | $350,301.18 | $10,868.20 | $339,432.98 | $11,753.04 | |
| 31 | Oct 15, 2028 | $11,835.67 | $354,822.00 | $857.47 | $343,843.80 | $339,432.98 | $10,895.57 | $328,537.41 | $11,753.04 | |
| 32 | Nov 15, 2028 | $11,835.67 | $343,843.80 | $830.02 | $332,838.15 | $328,537.41 | $10,923.02 | $317,614.39 | $11,753.04 | |
| 33 | Dec 15, 2028 | $11,835.67 | $332,838.15 | $802.51 | $321,804.99 | $317,614.39 | $10,950.53 | $306,663.86 | $11,753.04 | |
| 34 | Jan 15, 2029 | $11,835.67 | $321,804.99 | $774.92 | $310,744.24 | $306,663.86 | $10,978.12 | $295,685.74 | $11,753.04 | |
| 35 | Feb 15, 2029 | $11,835.67 | $310,744.24 | $747.27 | $299,655.84 | $295,685.74 | $11,005.77 | $284,679.97 | $11,753.04 | |
| 36 | Mar 15, 2029 | $11,835.67 | $299,655.84 | $719.55 | $288,539.72 | $284,679.97 | $11,033.49 | $273,646.48 | $11,753.04 | |
| 37 | Apr 15, 2029 | $12,190.74 | $288,539.72 | $690.87 | $277,039.85 | $273,646.48 | $11,062.17 | $262,584.31 | $11,753.04 | |
| 38 | May 15, 2029 | $12,190.74 | $277,039.85 | $662.12 | $265,511.23 | $262,584.31 | $11,090.92 | $251,493.39 | $11,753.04 | |
| 39 | Jun 15, 2029 | $12,190.74 | $265,511.23 | $633.30 | $253,953.79 | $251,493.39 | $11,119.74 | $240,373.65 | $11,753.04 | |
| 40 | Jul 15, 2029 | $12,190.74 | $253,953.79 | $604.41 | $242,367.46 | $240,373.65 | $11,148.63 | $229,225.02 | $11,753.04 | |
| 41 | Aug 15, 2029 | $12,190.74 | $242,367.46 | $575.44 | $230,752.16 | $229,225.02 | $11,177.60 | $218,047.42 | $11,753.04 | |
| 42 | Sep 15, 2029 | $12,190.74 | $230,752.16 | $546.40 | $219,107.82 | $218,047.42 | $11,206.64 | $206,840.78 | $11,753.04 | |
| 43 | Oct 15, 2029 | $12,190.74 | $219,107.82 | $517.29 | $207,434.37 | $206,840.78 | $11,235.75 | $195,605.03 | $11,753.04 | |
| 44 | Nov 15, 2029 | $12,190.74 | $207,434.37 | $488.11 | $195,731.74 | $195,605.03 | $11,264.93 | $184,340.10 | $11,753.04 | |
| 45 | Dec 15, 2029 | $12,190.74 | $195,731.74 | $458.85 | $183,999.85 | $184,340.10 | $11,294.19 | $173,045.91 | $11,753.04 | |
| 46 | Jan 15, 2030 | $12,190.74 | $183,999.85 | $429.52 | $172,238.63 | $173,045.91 | $11,323.52 | $161,722.39 | $11,753.04 | |
| 47 | Feb 15, 2030 | $12,190.74 | $172,238.63 | $400.12 | $160,448.01 | $161,722.39 | $11,352.92 | $150,369.47 | $11,753.04 | |
| 48 | Mar 15, 2030 | $12,190.74 | $160,448.01 | $370.64 | $148,627.91 | $150,369.47 | $11,382.40 | $138,987.07 | $11,753.04 | |
| 49 | Apr 15, 2030 | $12,556.46 | $148,627.91 | $340.18 | $136,411.63 | $138,987.07 | $11,412.86 | $127,574.21 | $11,753.04 | |
| 50 | May 15, 2030 | $12,556.46 | $136,411.63 | $309.64 | $124,164.81 | $127,574.21 | $11,443.40 | $116,130.81 | $11,753.04 | |
| 51 | Jun 15, 2030 | $12,556.46 | $124,164.81 | $279.02 | $111,887.37 | $116,130.81 | $11,474.02 | $104,656.79 | $11,753.04 | |
| 52 | Jul 15, 2030 | $12,556.46 | $111,887.37 | $248.33 | $99,579.24 | $104,656.79 | $11,504.71 | $93,152.08 | $11,753.04 | |
| 53 | Aug 15, 2030 | $12,556.46 | $99,579.24 | $217.56 | $87,240.34 | $93,152.08 | $11,535.48 | $81,616.60 | $11,753.04 | |
| 54 | Sep 15, 2030 | $12,556.46 | $87,240.34 | $186.71 | $74,870.59 | $81,616.60 | $11,566.33 | $70,050.27 | $11,753.04 | |
| 55 | Oct 15, 2030 | $12,556.46 | $74,870.59 | $155.79 | $62,469.92 | $70,050.27 | $11,597.25 | $58,453.02 | $11,753.04 | |
| 56 | Nov 15, 2030 | $12,556.46 | $62,469.92 | $124.78 | $50,038.24 | $58,453.02 | $11,628.26 | $46,824.76 | $11,753.04 | |
| 57 | Dec 15, 2030 | $12,556.46 | $50,038.24 | $93.70 | $37,575.48 | $46,824.76 | $11,659.34 | $35,165.42 | $11,753.04 | |
| 58 | Jan 15, 2031 | $12,556.46 | $37,575.48 | $62.55 | $25,081.57 | $35,165.42 | $11,690.49 | $23,474.93 | $11,753.04 | |
| 59 | Feb 15, 2031 | $12,556.46 | $25,081.57 | $31.31 | $12,556.42 | $23,474.93 | $11,721.73 | $11,753.20 | $11,753.04 | |
| 60 | Mar 15, 2031 | $12,556.46 | $12,556.42 | $0.04 | $0.00 | $11,753.20 | $11,753.20 | $0.00 | $11,753.24 | |
| Totals | $705,182.60 | $51,037.41 | $654,145.19 | $0.00 | $705,182.60 | |||||
Recurring journal entry — period 1
Representative entry; one entry per period follows the schedule. Use “Export journal entries” for the full set.
| Account | Memo | Debit | Credit |
|---|---|---|---|
| Operating Lease Expense | Straight-line lease cost | $11,753.04 | |
| Operating Lease Liability | Lease liability reduction | -$1,635.36 | |
| Cash / Accounts Payable | Lease payment | ||
| ROU Asset - Operating Leases | ROU amortization | $10,117.68 | |
| In balance | $10,117.68 | $10,117.68 | |