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Van Donated to Church

Posted: Mon Feb 17, 2014 2:33 pm
by santoheath
A van was recently donated to the church. How do we add that to our assets/liabilities?

Re: Van Donated to Church

Posted: Mon Feb 17, 2014 3:32 pm
by JohnDMeyers
Create an income account for "gift in kind", like 01-4180-000.

DB 01-1720-000 Van Asset $2,000
CR 01-4180-000 Van (gift-in-kind) $2,000

For depreciation:
CR 01-1880-000 Depreciation Reserve $200 (assuming 10-year straight-line depreciation)
DB 01-5890-000 Depreciation expense $200

You mentioned liabilities. Is there some debt associated with this van?

Re: Van Donated to Church

Posted: Wed Feb 19, 2014 9:21 am
by santoheath
Thank you!

I asked about liabilities because I'm trying to look ahead...insurance, maintenance, registration, etc.

Re: Van Donated to Church

Posted: Wed Feb 19, 2014 10:58 am
by JohnDMeyers
Those would all be expense categories.