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rsteenbu52
Level 2

Building Purchase

We recently purchased a building for $425,000 cash.  We put $50,000 down and the remaing balance paid at settlement.  How do I set up this asset and record the down money, and the final payment along with settlement costs?  (The checks we issued are still sitting in our items to be reconciled)

 

Thanks in advance for your help.

 

 

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1 Comment 1
BigRedConsulting
Community Champion

Building Purchase

1) Create a new asset account for the building.

2) Transfer cash from the appropriate cash account (a checking account?) to the asset account for $50k.

3) Later, create another transfer for the rest of the cash to the asset account. On that cash payment, you can record the other expenses as well, using the appropriate expense accounts, in as much detail as you wish to have in QuickBooks.

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