Accounting for Stolen Equipment

[RDPHELPS]

We have a line item on our Balance Sheet called Electronic Equipment for approx $7,000. We recently had a burglary and part of this equipment was stolen. We have replaced the stolen equipment for approx. $2,300. My question is how to account for this in order to capitalize it.

My thinking is the entry would be a debit to the equipment and a credit to the bank.

My question, however, is how do we remove the value of the stolen equipment from the $7,000 on the balance sheet?

[JohnDMeyers]

You actually incurred a non-cash expense for the loss of the item, which you could record like this:
DB 01-5890-000 theft of equipment (non-cash) $3,500
CR 01-1750-000 Electronic Equipment $3,500

To buy new equipment, you are correct with your thinking:
DB 01-1750-000 Electronic Equipment $2,300
CR 01-1110-000 checking $2,300

To add this new equipment to your depreciation schedule:
DB 01-5910-000 depreciation expense $230
CR 01-1890-000 depreciation reserve $230

[RDPHELPS]

Thank you for your assistance, it is greatly appreciated.