iNCREASE BUILDING APPRECIATON

[TBCgunni]

The original amount for some property was entered into the system as a negative amount orginally. How can I change this and add some appreciation? The amount was -80K - want to make it 180K??? Thank you - Elida Jacobs

[JohnDMeyers]

To change the original entry:
DB 01-1810-000 building asset $260,000 (the difference between -$80 and $180)
CR 01-3110-000 unrestricted net assets $260,000

To add $10,000 market value to the property, there are two ways.

One is to add directly to the building asset account and equity.
DB 01-1810-000 building asset $10,000
CR 01-3110-000 unrestricted net assets $10,000

One is to show the increase as non-cash income:
DB 01-1810-000 building asset $10,000
CR 01-4110-000 market change in bldg value $10,000 (closes-to 3110)

Note: sometimes the market change is negative, and that is ok to enter the same way.

I think I would enter it as non-cash income, simply because I always get in trouble whenever I directly change an equity account for no good reason. At the close of the last month of the year, the income will automatically update the "unrestricted net asset" account, so the end result is the same.