In-Kind payment

I use equipment from my church that has a rental value $35 a week. I don't get paid cash as I get free (in-kind) use of it for services that I perform at the church. How do I account for this. My guess is CR
$35 to In-Kind Sales and DR $35 to Tools and Equipment.
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Yours,
Dan S.
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"Dan S." wrote

So......
You use church owned equipment to perform services at said church, presumedly these services are for the church and/or it's members. Why are you wanting to book revenues and expenses for? Seems like a waste of time, not to mention misleading to users of the financial statements.
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Paul A. Thomas, CPA
Athens, Georgia
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Paul Thomas, CPA has brought this to us :

No, I use their equipment in my business away from and off of church property for profit. It is a signed lease. Before I signed the lease, I received $35 a week for my services .. now, I get to use the equipment (a lawnmower) whenever I want.
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Yours,
Dan S.
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"Dan S." wrote

I'm not bitter. Just waiting to see if someone else would chime in with a different perspective.
There's no real reason to book revenues you didn't receive and expenses you didn't pay. The net result is zero, so why bother. In my view, posting those entries could be misleading to someone who sees your financials. Think Enron. They were booking revenues that didn't exist.
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Paul A. Thomas, CPA
Athens, Georgia
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wrote:

I'll chime in but with the same perspective. Maybe the OP thought there would be tax advantages or something to justify booking the entry.
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John laid this down on his screen :

Yes, that is part of it. The rest I was thinking would be in analysis ratios. It was work done. Although the money never changed hands, its value 'flowed' through the business, so to speak.
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Dan S.
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Paul Thomas, CPA expressed precisely :

So, that's it. No real advice. Are you bitter about something?
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Dan S.
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On Mon, 04 Jun 2007 18:35:26 GMT, Dan S. wrote:

What is the reasoning behind increasing an asset account for stuff that isn't yours?
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It's amazing what a man can accomplish when he's not worried about who will
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Rocinante submitted this idea :

Oh. Sorry, should have explained. It goes straight from revenues to expenses. I have a Tools and Equip in both assets and expenses. When I buy something with residual value, I move it to assets.
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Dan S.
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