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Photography - Used Equipment Sales question

Hi guys,

 

Quickbooks and accounting newbie here. I recently sold a camera and a small monitor that I don't use, and I'm trying to figure out how to categorize it in my banking.

 

I didn't set up anything as an asset, I have no idea what an asset is, etc etc, but I'm really wondering if anyone is able to help me out with how I categorize this as a part of "my income" --- so I add a new category and just call it "Equipment Sales"?

 

Thanks again,

Frank

2 Comments
Senior Explorer ***

Re: Photography - Used Equipment Sales question

An asset is basically something you have or something someone owes you.

 

While there are some situations where you would want to treat this sale more rigorously (such as anything having to do with taxes (will the buyer issue you a 1099?), capitalization/depreciation, gains/losses, sales of collectible items (e.g. antique camera)), I suspect you're just trying to find a straightforward way to record where the new cash came from. In this case you could create an Other Income account for "Sale of Expensed Assets" where you record sales like this that are priced at fair market value of the items sold. Because you're trading one asset (equipment) for another (cash) of equivalent value, you don't report profit or income from the transaction.

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Re: Photography - Used Equipment Sales question

I may have a similar situation. When we may need to sell an item to other business who wants to use if for their office purposes, it is not just a garage sale type. The other party may require us to issue an invoice with sales tax collection. In this case, even if that sale is not the principal business activities of a company, it becomes a sales of an asset (general equipment, which is already expensed.) In that case, should we create an account like 'misc. sales' in the sales income and link to it ? Or, follow your "other income " posting method and only include that sales value to report sales and submit a sales tax for state filing purposes ?  A sale of equipment, to help replacement cost, is an important matter for a small business.  Any further tips to use non-inventory item list or  properly issuing invoice as a spot sales of non- fixed asset would be appreciated.

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