MEW LAPTOP PURCHASED FOR CHURCH USE

[oztheguitarman]

31st July 08

We have purchased a New Laptop for the church.

Is there a special way of processing this transaction for depreciation etc etc.

Osvaldo De Souza

[NeilZ]

31st July 08

We have purchased a New Laptop for the church.

Is there a special way of processing this transaction for depreciation etc etc.

Osvaldo De Souza

I did a forum search on depreciation, and came up with this thread:
http://www.powerchurch.com/forum/viewtopic.php?t=2710

It concerns a bus, but the depreciation would be handled much the same.

[oztheguitarman]

2nd August 2008

Thanks for the reply.

Please let me know if the following entries are correct.

a) Create a new ASSET (under EQUIPMENT) say 01-1841-000 LAPTOP
b) Create a new DEPRECIATION (under OTHER EXPENSES) say 01-5512-000 LAPTOP DEPRECIATION

PROCESS PURCHASE OF LAPTOP ENTRY AS FOLLOWS :

CREDIT Main Bank Operating A/C 01-1110-000..................$ 900.00
DEBIT LAPTOP Asset A/C 01-1841-000...............$ 900.00

PROCESS FOLLOWING MONTHLY DEPRECIATION (I have estimated between 30 to 35% depreciation per year say $ 25.00 per month over 3 years period)


CREDIT LAPTOP ASSET A/C 01-1841-000..........................$ 25.00
DEBIT Laptop Depreciation A/C 01-5512-000....$ 25.00

(Will save above as Repeat Recall Entry to process on monthly basis)

Please confirm if above entries are OK to process.

Thanks

Osvaldo

[Matt]

You need to set up a third asset account for the accumulated depreciation. For example 01-1850-000 "Accumulated Depreciation-Laptop". Then when you record depreciation each month the entry is as follows:

Debit 01-5512-000
Credit 01-1850-000

[oztheguitarman]

3rd August 08

Thank you Matt for your feedback.

Regards

Osvaldo