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    newllc68's Avatar
    newllc68 Posts: 3, Reputation: 1
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    #1

    Jan 18, 2009, 01:01 PM
    Personal tools moved into business asset
    We started a lawn mower repair business but are using tools that we personally had for the business. How do we document those tools now for business use and how much do we allocate as an asset for tools and equipment?
    pacific nw's Avatar
    pacific nw Posts: 117, Reputation: 11
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    #2

    Jan 18, 2009, 07:23 PM
    Generally, use something like Turbo Tax. It asks the year the tools were purchased and the amount. Then it asks when they were placed into service and what percentage of the usage is dedicated to business applications and what percentage to personal use.
    Hope that helps.
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
    		  
    #3

    Jan 18, 2009, 08:28 PM

    1. Estimate the Value of the mower at the date you moved it in as an asset of the business.

    Journal entry :-

    debit equipment account xxxx
    credit loan owners xxxx

    transferring lawn mower into business.
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