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November 11, 2013 11:36AM
I am having another depreciation issue, I hope this one is simpler than some of the ones before, here is what happened.

On January 3rd 2012 I purchased two combines and traded in two combines, everything good,
On October 24th 2012 I traded both combines for two new combines without recording depreciation on trade inns before doing the purchase. Here lies the problem, after the purchase and trade, I recorded the depreciation (DON'T DO THIS)(38377.60) on the trade inns giving them a negative book value, and the depreciation (11745.89) on the new combines. So at the end of the year before year end, everything looked good for total ACC dep and dep expense and machinery original cost.

After year end though original cost of the new combines should be $438513.20 instead of 476890.80. Since I recorded depreciation to trades after sale it didn't follow new combines (my fault)

So as of 1-2-2013 the original cost new combines should be 476890.80 (cost before depreciation on trades added)- 38377.60 (depreciation on trades)=$438513.20.

Here is what I think one must always do!!!!!!!!!!!!!!!! record correct deprecation on trades before sale when one has selected to keep deprecation on new machine, if not void sale enter correctly then complete sale. DO THIS BEFORE YEAR END !!!!!!!!!!!!!!!!! This should be emphasized when one checks this option in the accounting menu!!!!!!!!!!

This post is intended to help others not to make the same mistake.

Please Help!!!!!

Thanks!
SubjectAuthorPosted

Depreciation

dirtclodNovember 11, 2013 11:36AM

Re: Depreciation

Mitch KonenNovember 11, 2013 06:25PM

Re: Depreciation

dirtclodNovember 12, 2013 10:45AM

Re: Depreciation

KathyClineNovember 11, 2013 04:52PM

Re: Depreciation

dirtclodNovember 12, 2013 10:42AM

Re: Depreciation

KathyClineNovember 12, 2013 01:20PM



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