AGH the CPA
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What would the journal entries be for HVAC repairs that improve/extend the life of the units? Assume cost of $75,000
USA Accounting entries for capitalization of HVAC repairs
- Thread starter AGH the CPA
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AGH the CPA
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I should have been more clear - yes the basic entries I know.
DR asset
CR cash
DR depreciation expense
CR accum dep
What if the purchase was financed? Its been many years since my classes and this is the first time I've had this come up. (Im in private not public accounting) Do I just replace the CR to cash with a credit to lease payable? and then offset the lease payable with the payments? I just want to make sure Im not missing something here.
DR asset
CR cash
DR depreciation expense
CR accum dep
What if the purchase was financed? Its been many years since my classes and this is the first time I've had this come up. (Im in private not public accounting) Do I just replace the CR to cash with a credit to lease payable? and then offset the lease payable with the payments? I just want to make sure Im not missing something here.