Entering Depreciation

Feb 15, 2008 1 Replies

I keep the books (QB 2007) for our non-profit club, using the cash- basis accounting method I inherited. I entered the cost of building remodeling in our depreciation schedule, and plan to take first year depreciation using the straight-line mid-month method based on the date the improvements placed in service. But some of the bills for the remodeling were paid after the end of that fiscal year. How should I enter these transactions to properly account for the expenditures and first year depreciation? Thanks for your help.



Bill Bickner


As a journal entry:

Improvements xxxxxxxx Due to Builder xxxxxxxxxxxxxxx

Yes I know you said that you are cash basis, but in instances like theses you should record the asset and liability.

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