Our company purchased piece of equip for $24,000.00. We put $5000.00 down and received rebate of $4000.00 so loan amt is for $15000.00. How do I record the fixed asset?
Thank you.

j/e 1 equipment account dr 24,000.00
Bank account cr 5,000.00
Equip a/c rebate cr 4,000.00
Loan account cr 15,000.00

Being to booking of a piece of equipment.

Quote:

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Originally Posted by ROLCAM

j/e 1 equipment account dr 24,000.00
bank account cr 5,000.00
equip a/c rebate cr 4,000.00
loan account cr 15,000.00

being to booking of a piece of equipment.

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I would record the purchase of Equipment net of the rebate. So DB Equip - 20,000.

And what do you mean by A/C do you mean A/R? You’re assuming they will receive 4,000 in the future but from the question that does not seem to be the case.

Equip a/c rebate cr 4,000.00
THIS MEANS:-
Equipment account dr 4,000.00

Which in effect makes your statement to be so:-

I would record the purchase of Equipment net of the rebate. So DB Equip - 20,000.

However my way indicates the fact of the rebate existed.