Question

how do I record this in Quuckbooks?

Ordered two Ceiling Boom Wash Systems from Ultimate Washer; wrote check number 10029 for 3300. Equipment has a three-year expected life; will be installed the week of Dec 27. (create a fixed asset account: Equipment)

I didnt record it right because this amount seems to be missing from my balance sheet and profit and loss report.......please help

Answer 1

1. Here, Quuck forgot to record the above transaction in his books of account. But recorded the same in his check payment recorder.

Instance is simply purchase of two ceiling boom wash systems from Ultimate Washer.

Quucks have treated them as Fixed asset so accordingly journal entry will be:

Equipment A/c Debit 3300

To Bank A/c 3300

( Being Equipment purchased @ 3300 from Ultimate Washer)

As per Accounting principle Equipment once are Ready to use, need to be accounted adn depreciation shall be charged from 27 Dec to till end of the year.

Calculation of depreciation:  3300-0 / 3 = 1100*5/365= 15.0684 Rounded off to 15.07

Depreciation A/c Debit 15.07

To Equipment A/c 15.07

( Being Depreciation chagred fo Equipments for the year ended)

Equipment A/c Reported in Balance sheet as

Equipment A/c= 3300-15.07 = 3284.93

Depreciation A/c need to be charged to Profit and loss A/c Accordingly , Profit will get reduced by such amount.

Bank Account will not hit as the statment / value is taken from bank statment and matched with the check records.