1.As we are at end of the year, i wanted to record accumulated depreciation of my all Fixed asset .
2. i am not sure if we created a proper depreciation account for each Fixed Asset/type, hence i want the steps to create and step to record the accumulated depreciation ,so the effect will take place .
There are several ways to structure the fixed asset account list, I do it like this
>>Truck, Dodge 1500
>> >> cost
>> >> accumulated depreciation Dodge 1500
>> >> accumulated depreciation Mercedes
debit depreciation expense
credit fixed asset accumulated depreciation, Dodge 1500
credit fixed asset accumulated depreciation, Mercedes
I would like to group the asset with the accum deprec directly under the asset on the Balance Sheet. However, I understand the asset is listed as a fixed asset, however, the accum depreciation has to an "other asset" so it can't grouped directly under the asset. Is this correct?
Also, should be accum deprec show up as a negative number on the Balance Sheet?
No accumulated depreciation is the same type of account, fixed asset, then it acts like a contra account lowering the full amount. No it is not a negative entry, it is a credit entry to the fixed asset depreciation account
In QuickBooks Online, I credited accumulated amortization (as a fixed asset) and debited amortization expense and the accumulated amortization shows up as a negative number. I am not sure what I am doing wrong...
Hello there, @alyvictoria.
The cost is the total price associated with the purchase of an asset. The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and putting the asset to use.
It includes the money involved in purchasing assets and putting them to use for their purposes. Original cost is also known as an asset's cost basis for tax purposes.
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