Recording an Asset that was purchased
rkiefer2
Member Posts: 3
My head is spinning on this one. I loaned my business $11.5K for some equipment. I have the $11.5K show as a loan under liabilities as a loan and $11.5K as an equipment purchase under operating expenses.....So the P&L statement is all good.
But when I look at my balance sheet I want to see the asset on that side its a few months old, so let say its only worth $10K now.
HOW DO I GET THE ASSET SHOW UP ON THE BALANCE SHEET AND KEEP IT IN THE OPERATING EXPENSES?
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Comments
@rkiefer2,
You classified the debit as an expense and not an asset. Hence why it is not appearing on the balance sheet. If you are in the US then it should be shown on the balance sheet. You would depreciate the asset according the rules set out by the IRS. You record depreciation by debiting Depreciation Expense and crediting accumulated depreciation.
Thank you.