Ask Experts Questions for FREE Help!
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps
 
Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Accounting    Ask about another Subject  
 
PDA

drkohout
Sep 25, 2007, 09:55 PM
I am purchasing a rental property that is not yet built. The builder is requiring 5k down, then an additional 5k 60 days before completion. I wrote a check to the builder for the initial 5k. How do I enter that in quickbooks? It is not an expense is it? I believe that it would be a long term liability, either due to owner, or listed under the property name? I am not sure how to enter the check. Please help?

TK
CaptainForest
Sep 26, 2007, 04:49 PM
It is NOT a liability as far as YOU are concerned. It is for the builder, but you aren’t the builder.

Dr. Some Type of Prepaid Account (an asset account) 5,000
Cr. Cash 5,000