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    T 1's Avatar
    T 1 Posts: 2, Reputation: 1
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    #1

    May 7, 2013, 08:01 AM
    Supplies are capitalized
    Supplies are bought on credit and capitalized, $ Amt 32,000.
    DR Supply Inventory 32,000.
    CR Supply Payable 32,000.

    But how is possible to show "capitalized"?
    Please!
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    May 7, 2013, 12:34 PM
    Capitalized does not mean anything for supplies as they are just recorded as an asset when purchased and expensed when used.

    Capitalization is for equipment or other items that have a useful life over multiple accounting periods like vehicles, computers, furniture, etc...
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