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...