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Depreciation, still confused

bravo0123bravo0123 Member Posts: 2

I am replacing the roof on my rental property X. I create an asset account Roof under "Property, Plant, Equipment". The bank check for this roof payment posts, and I categorize it under this Roof asset. At EOY I journal the depreciated amount to the property X's Accumulated Depreciation category (in "Depreciation and Amortization")? If that is all true then why does wave say I need a Depreciation account in Expenses?

edited April 7, 2022 in Accounting Technical Support

Comments

  • bravo0123bravo0123 Member Posts: 2

    Oh, maybe I understand. At the EOY a journal is entered to debiting the depreciation expense account and crediting the accumulated depreciation for the property X. Is that correct?

  • MikegMikeg Member Posts: 995 ✭✭✭

    @bravo0123,
    That is the correct entry.

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