I didn't see your post until now.
I was wondering why wouldn't you record the payment in the Replacement Reserves (ex Roofing Reserves) equity account instead of Capital Expenditures account?
It's personal preference. I prefer to see Capital Expenditures as a negative equity amount because it allows you to see capital expenditures relative to total Reserve Equity. For example, say you have booked $300K in reserves and you have had $250K in capital expenditures. If your balance sheet just shows $50K in reserve equity, it's difficult to understand the relative amount that $50K is to the total collected and spent. If you just show $50K in reserve equity, there would be no difference between an HOA that has collected $60K and spent $10K in capital expenditures or an HOA that has collected $1M and spent $950K - they would both show $50K in reserve equity. In the first case, they probably have adequate reserve equity whereas in the second case, they are probably running it too thin. I just think it's better for the HOA Board, management company (if applicable), and owners to see that. Here is what that looks like on one of our HOA's recent balance sheets:
Hope that helps.
