Office Building Purchase

franmd · #1 Jan 29, 2008, 06:51 PM

Acme Plus purchases a new office building for $600,000.00. Working in Quickbooks, how is the mortgage information entered? I know there has to be a long term liability for the mortgage but is the $600,000.00 also entered as an asset? Thanks

MaggieMouse · Feb 2, 2008, 10:31 AM

Yes, if there is no downpayment or upfront charge of some sort.

delite · Feb 2, 2008, 09:22 PM

purcase of building is an asset and should be recorded as such, offsetting is a documented liaibility(the underlying debt, the entries would be to record purchase of asset: building 600k/cash 600k

to record the liailbity; cash 600k/mortgae payable 600k.



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