USA Accounting entries for capitalization of HVAC repairs


AGH the CPA

VIP Member
Joined
Jun 16, 2017
Messages
118
Reaction score
17
Country
United States
What would the journal entries be for HVAC repairs that improve/extend the life of the units? Assume cost of $75,000
 
Ad

Advertisements

Drmdcpa

VIP Member
Joined
Aug 2, 2017
Messages
496
Reaction score
39
Country
United States
Really a CPA that does not know something so basic?
 
Ad

Advertisements

AGH the CPA

VIP Member
Joined
Jun 16, 2017
Messages
118
Reaction score
17
Country
United States
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.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top