[mltsara]

Join Date: Feb 2008
Posts: 2
Journal Entries... please

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On my trial balance I have an Bldg Fixed Assets of $110,000 debit; I need to credit this amount .
Which account do I use?

But, I have to create the following accounts,
w/debit balances
Office Equip. $6500.
Leasehold Improvem $7,200.
Vehicle $3,500.
Equipment $25,000
FF&E $50,000.

New acctountant. Said to pick whatever accts?? to offset... I made other various entries... I just to make sure these are done right!
Sara

[morgaine300]

I don't get quite what you're trying to do. The other accounts don't have anything to do with your building. The only reason I can think of to "offset" the building account is for depreciation, which is a contra asset account called Accumulated Depreciation. But you have to know how much, and I doubt an accountant would tell you to pick "whatever" acct you want. That makes no sense. You are also stating the Building acct has $110,000 and you need to credit "this amount." That says to me you need to credit $110,000. Why?

Can you please explain better what you are trying to do?

[morgaine300]

I have another question. I didn't get the impression this was homework for a class, but is it? Or is this for a real company?

[mltsara]

I don't get quite what you're trying to do. The other accounts don't have anything to do with your building. The only reason I can think of to "offset" the building account is for depreciation, which is a contra asset account called Accumulated Depreciation. But you have to know how much, and I doubt an accountant would tell you to pick "whatever" acct you want. That makes no sense. You are also stating the Building acct has $110,000 and you need to credit "this amount." That says to me you need to credit $110,000. Why?

Can you please explain better what you are t11rying to do?

I need to zero out current balance. The bldg. fixed asset has $110,000. Debit bal. So I have to make a credit entry for $110,000.
Yes your are correct the other journal entries do not have any impact on this transaction. I have to debit furniture, vehicles, etc and credit an expense acct? Depr. Already done.

[morgaine300]

I still have absolutely no idea what you are trying to do. Since every entry must involve at least two accounts, then I need information to know what the other side of that entry is. You're only telling me you need to credit the building account for the amount that is in it, but no one can know what needs debited without knowing what is going on. The only reason you should ever have to credit the entire amount all at once in a fixed asset account like that is if it was sold.

Then you're saying you have to debit "furniture, vehicles, etc and credit an expense acct", with a question mark. Again, why are you debiting all these accounts at once? Unless I know what exactly you are doing, I would have absolutely no idea what you would need to credit. Although an expense account seems quite illogical. As a general rule, if you're debiting any fixed asset account, it's because you just purchased it, meaning the credit would be cash or a liability of some sort, or both.

[chasewoogie]

I guess this is a case of incomplete records and you are trying to "force balance" the trial balance??

However, only you can better explain what you really want to achieve.

[morgaine300]

The thread is a year and a half old.