Re: Example of depreciation transactions?

["Chris Travers" <..hidden..>]

On 11/12/06, Ed W <..hidden..> wrote:
> Hi
>
> I'm sure that there are plenty of examples somewhere on the SL list, but
> I couldn't locate any easily with google.

I haven't seen any.
> Can someone please give me an example of the transactions required to
> book buying an item like an office printer, then adding it to the
> depreciable assets and finally knocking off 40% for the first years
> depreciation?
>
> - I am using a fairly close to default COA.
> - I buy my printer with a purchase invoice, booking it into something
> like an admin expenses account called "Computer Expenses".

AP transactions are better than invoices for this.

You can also make an asset account show up  on the AP transactions
screen by checking the Payables Expense/Asset checkbox.  Moving the
money to expense first needlessly complicates your  books.  IANACPA,
but I have a hard time believing that this is GAAP compliant.

Note that making this method work well may involve some additional
customization.  Please share your stories, thoughts, etc. so we can
help deal with this case (it is a standard accounting case and
generally applicable).

> - I then put in a journal entry to transfer it from here into my capital
> assets ledger: "Office Furniture & Equipment "
> - Then I put in another transaction to shift 40% from the capital assets
> account into "Accum. Amort. -Furn. & Equip. "

The last stage is also correct.
> This all looks nearly correct on the balance sheet, but I don't appear
> to have the depreciation turning up on the Income Statement report?

Just checking-- this is an accrual basis statement, right?

And trial balance shows the amounts, right?

> What am I missing?  Does this sound like the correct way to book the
> transaction?
>
> Cheers
>
> Ed W
>
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