Re-evaluation of our church property

[raylaurenza]

We have just had our church property re-appraised and it has gone up considerably. How do I journal that to reflect the change in the total value of our Fixed asset(building) and Land

Right now our balance sheet shows:

Fixed Assts
Building 1610 610,000.00

I need to add the Land and the Parking Lot

The building is now valued at :

Bldg 1,561,000.00
Land 175,500.00
Parking Lot 182,250.00

Thanks for help

Ray

[NeilZ]

We have just had our church property re-appraised and it has gone up considerably. How do I journal that to reflect the change in the total value of our Fixed asset(building) and Land

Right now our balance sheet shows:

Fixed Assts
Building 1610 610,000.00

I need to add the Land and the Parking Lot

The building is now valued at :

Bldg 1,561,000.00
Land 175,500.00
Parking Lot 182,250.00

Thanks for help

Ray

Adding to the current value is a simple DEBIT of the asset, and CREDIT of the unrestricted net balance, which is usually the Fund Balance account that such assets are attached to.

That said, I dislike doing that as it makes it seem that there is more money available in the 'fund balance' than what is actually 'liquid". I put these asses in a separate Accounting Fund I called 'physical plant' as that still reflects the value of the plant, but does not inflate the 'liquid' assets of the church.

You would add the Land and Parking Lot by creating the asset accounts, and doing the same type of transaction as increasing the building asset.

Hope this helps.

[raylaurenza]

Yes.

Thank you very much. I thought that was the case but wasn't 100% sure.

Ray