Hello! I need verify that I correctly entered the purchase of my printer (Fixed Asset with Depreciation). I am new to QB and accounting! I know that I made the correct Fixed Asset accounts with the Original Cost and Depreciation accounts. My question come in how to categorize the transaction of the purchase. I feel like I may have recorded it wrong.
I categorized the purchase as an expense (Other Business Expense) and it was paid by a combination of owner payments put in as individual equity account entries.
I attached screenshots of the Fixed Asset Account and the Expense Transaction. I am not sure where the Opening Balance Equity account came from - I did not create that, QB did when I set up Fixed Asset account.
Can someone either verify that this is correct or tell me where I went wrong :)
QuickBooks Online (QBO) automatically tracks the current value and depreciation of your asset when creating the account. You might want to delete the journal entry created by the system since you'll be entering the purchase transaction of the asset.
On another note, you can create an expense and use the Fixed Asset account. You'll have to change the line 1 to Fixed Asset since an equity account was used to pay for the computer.
I'd recommend working with an accountant for better guidance in tracking your depreciation in QBO.
I remove the journal entry that posted the original amount from the Fixed Asset Printer Original Cost account and then change the category "Other Business Expense" to Fixed Asset Printer Original Cost account?