USA What is the proper way to book purchase of equipment for not immediate use?

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Good morning, I am new to this forum and apologize if this question has been asked before.

We are an Assisted Living business, and we recently made purchases of stoves and refrigerators that will not be replacing any of the stoves and refrigerators currently being used int the tenant's apartments.

The new stoves and refrigerators will be used in the future to replace old ones as needed.

Would you please help me with the proper way to record this purchase in the books? :confused:


I apologize for asking this simple question, but it's been a long time since I left school. I got back in accounting after kids left for college. ;)

I would appreciate your help so much.

Thanks!
 
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Jan 2, 2012
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This will be similar to inventory account, it should be in Other Asset category. Book equipment there, and when placed in service, move to Fixed Asset account and start depreciating. Do not record depreciation on equipment that is waiting to be used.
 

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