balance sheet

  • Thread starter graeme robertson
  • Start date

G

graeme robertson

I am confused as to which part of the balance sheet contains machinery
and buildings costs. Can anyone help
 
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R

Robertazimmerman

I am confused as to which part of the balance sheet contains machinery
and buildings costs. Can anyone help
Depends....if these are "expenses", then they go in the variable
expense section of the income statement (debit the expense, credit
cash or A/P). If you are referring to "depreciation", then the expense
is charged the same way, but the credit is to an asset depreciation
account in the Fixed Assets part of your balance sheet.

For example, if you buy equipment today worth $100k, it should go on
your books as a fixed asset worth $100k. If you depreciate it $2k
every month, then the expense will show as $2k/month and the asset
depreciation account will show -$2k. At the end of the year, your
expense write off for that equipment will be $24k and the asset side
of your blanace sheet will show:

Asset: $100k
Asset depreciation: -$24k

So at the end of one year, your equipment will show a book value of
$76k.

Kapish?

Roberta
 

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