Adjustment to building and furniture and equipment

[carolh]

We just started to use Power Church and our small church had not been doing balance sheets. To do the accounting set up I used $250000 for the building and $50,000 for furniture and equipment
which are the amounts we are insured for. Our board wants to reduce both of these figures for our balance sheet. How can this be accomplished without recording depreciation expense for the amount of the writedown.

[Jeff]

To reduce these accounts you would credit the account for the amount want to reduce and debit the unrestricted assets account.

For example if you want to reduce the Furniture Account by $5,000

credit the furniture asset for $5,000
debit the unrestricted net assets (3110) for $5,000