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Buy nowHello,
I have been advised that per the attached Balance Sheet, there is a small amount of Total Fixed Assets in the amount of $3,283.95 waiting to be depreciated. What action items need to be taken to depreciate this amount and at what point in time should this happen?
Thank you again for your assistance!
Usually depreciation is an annual thing, but some companies do it monthly, regardless the total annual amount depreciated is the same.
In QB you use a journal entry
debit depreciation expense
credit accumulated depreciation-asset ( this is a fixed asset account named for the asset being depreciated, usually a sub account)
See IRS pub 946 for tables that list the types of fixed assets and the number of years they can be depreciated
It depends on what fixed assets make up that balance and when they were placed into service. The adjusting entry is generally made at year-end and your CPA should have the depreciation schedules. Those schedules will tell you when that $3,283.95 balance should be expensed as depreciation.
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