USA Fixed Assets-Capitalizing An Asset that's 50% Paid For

[StaffAccountantTX]

Hi!

I'm working on the fixed assets for the month and I'm pretty new so I'm not sure how to handle this case. We have a store that is going through a remodel and we paid a 50% deposit for them to begin the demo last month. The remodel is complete but we have been invoiced or paid for the remaining 50%. Can I capitalize the asset being that the service is complete but we've only paid for half thus far? Or should I wait until 100% of the service is paid for and simply catch the depreciation if needed?

Thanks!

 

[Md Kamrul Hasan]

No need to worry about it. You had paid 50%, you are able to do that. And when you pay remaining 50% you add it. But you have to start depreciation from 50%. As your company policy.

 

[CPA608]

If the remodeling is complete and it is now being use, i believe you should capitalize 100% and the remaining balance should be recorded in your AP.