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    kornegay7's Avatar
    kornegay7 Posts: 3, Reputation: 1
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    #1

    Oct 16, 2008, 01:26 PM
    Fixed Asset Journal Entry
    Our Balance Sheet needs to reflect the present value of the land and building which is $175,000. We were not using double entry bookkeeping at the time of the purchase, so therefore, we did not record the transaction on our books. I know that entry should include a debit to the fixed assets line item for building and land purchase. However, what should I credit since the loan is completed and there is no outstanding liabilities for this item. Thank you for any help.

    Kornegay7
    MLSNC's Avatar
    MLSNC Posts: 158, Reputation: 17
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    #2

    Oct 16, 2008, 03:59 PM

    Seems to me that the credit would be to an owner's equity account or retained earnings or possibly common stock. Would need to know the type of entity.
    kornegay7's Avatar
    kornegay7 Posts: 3, Reputation: 1
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    #3

    Oct 18, 2008, 04:21 PM
    Quote Originally Posted by MLSNC View Post
    Seems to me that the credit would be to an owner's equity account or retained earnings or possibly common stock. Would need to know the type of entity.
    What do you mean by "type of entity"?
    MLSNC's Avatar
    MLSNC Posts: 158, Reputation: 17
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    #4

    Oct 18, 2008, 08:48 PM

    Sole proprietors and partnership = owner's equity

    Corporations = common stock or retained earnings
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
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    #5

    Oct 19, 2008, 05:37 AM

    Dr. Land
    Dr. Building
    Cr. Loan Payable

    Dr. Loan Payabel
    Cr. Current account or cash

    Dr. Retained Earnings
    Cr. ACCUMULATED DEPRECIATION
    This entry for the previously unrecorded depreciation expense for bulidings
    kornegay7's Avatar
    kornegay7 Posts: 3, Reputation: 1
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    #6

    Oct 23, 2008, 10:35 AM
    Quote Originally Posted by MLSNC View Post
    Sole proprietors and partnership = owner's equity

    Corporations = common stock or retained earnings
    We are a non profit organization
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