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Hello,
I have a camera that was purchased for my LLC for $4,000. It is being used 75% for business use and 25% personal. I'd like to record the asset's correct book value and depreciation. I'll be 179 depreciating the asset's full business use value this year.
I am trying to figure out what accounts to debit and credit for these transactions on Quickbooks Online.
I know the entries if these was 100% business use. The part that is confusing me is the personal %. If below are the 100% business use entries, how do they change to account for the $1,000 personal percentage of use?
If 100% business.
purchase:
debit - $4,000 computer fixed asset
credit - $4,000 checking account
depreciation:
debit -$4,000 depreciation expense
credit - $4,000 accum depreciation
If 75% business use and 25% personal use, then how is that accounted for in Quickbooks Online?
Thanks so much,
Aaron
Assuming you are taxed as a sole proprietor or a partnership ...
when you enter the purchase
line one, the fixed asset account, full amount
line two, owner/partner equity investment, the personal amount as a negative number
save
Rustler, thank you so much for the prompt response! I was really amazed by your response time!
You are correct that I am taxed as a sole proprietor/"single-member LLC."
Your information definitely helps put me on the right track except that there is one more caveat I forgot to mention:
Given that information, how could I factor those first nine 0% payments into the other "line-item" suggestions you previously provided me with? And based on your answer to that question, how would I properly "Categorize" those payments that will be showing up monthly for 9 months so that the numbers stay accurate within this new fixed asset account I need to create?
(Also, as a very right-brained artist I reach "Aha" moments much quicker when my brain can process data entry in an at least somewhat visual way or "recipe" type way. I don't want to ask too much of you, so no problem if you can't oblige this in your response, but it would be AMAZING if you could please reply in a format that looks something like this to help me digest what I need to be doing within Quickbooks exactly (realizing my example is probably pretty inaccurate currently):
CHART OF ACCOUNTS
(What I listed above is about as far as I could make it on my own, and I'm not even that confident in my correctness of those first steps listed above. I presume some Journal entries are likely involved in this process, but the fact that I'll have 9 monthly payments coming through QBO's banking section for this item makes me question my Journal entry assumption, as well as how often I need to make Journal entries if they are needed..)
Thanks so much in advance for your wisdom! You're a total rockstar all over Quickbooks support channels and (I realize how convoluted this situation I'm inquiring about is, or at least to me it is anyway!)
I have a similar issue. The owner purchase a Mercedes Benz Sprinter van in 1/2020. He has made all of the payments from his personal account. The purchase price was $77,138.34. He made a down payment of $26,500. The balance left was $50,538.34
Live Bookkeeping made the following entries:
1/24/2020
Credit: Sprinter Loan Payable $50,638.34
Debit: Sprinter Asset $50,638.34
Credit: Owner's Investment $26,500
Debit: Sprinter Asset $26,500
They made a second entry to reverse the one above.
1/31/2020
Debit: Sprinter Loan Payable $50,638.34
Credit: Sprinter $50,638.32
Debit: Owner's Investment: $26, 500
Credit: Sprinter:$26,500
They also made a duplicate entry to this one.
These entries left a balance of 0.00 in the Loan Payable account and in the Sprinter Asset account. Is this all correct?
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