fixed assets

[yoknox]

new forum - setting up Power Church for a church 30+ years old and there are lots of missing records; therefore, do not have purchase price for some land and building, equipment, etc . that will be under fixed assets. Plus not able to have accumulated depreciation. Hopefully someone can advise me as how to handle this in accounting set up. Can't move on until we complete the accounting setup and the missing info is holding us back. Also saw officer furniture on chart of accounts but no church furniture such as pews, etc. Where does this go?

[JohnDMeyers]

You can enter the current market value of the church and property for the church building asset.

Also, things permanently attached, like pews, are generally considered part of the church building.

For office equipment, and things that depreciate, you can find out what the replacement cost will be, and work backwards to establish your depreciation.

Let's say it will cost $10,000 to replace your offce furniture, and it will need replacing in 5 years. Let's also say that you determine the new office furniture will last 15 years. 1/15 of $20,000 is $1,333.33, which would normally be your yearly depreciation amount. However, you need to enter an accelerated amount, because you don't have 15 years left on your current office furniture.

I would enter $20,000 for the value of the office furniture in furniture and equipment.
I would enter 10/15 x $20,000 as the depreciation on the current office furniture, or -$13,333.33, making the current value of office furniture on your books to be $6,666.67

If you followed all of that, you can do a similar exercise for each of your furniture and equipment items. Your depreciation entry will be the sum of all the depreciations.