recording purchase of a building from closing docs

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#1
juro  
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918
Joined:
18-Oct-2015 9:11am
Location:
USA
https://imgur.com/YR93h7z


How do i record the
a)Rent Proration of $1,890.46?
b) Security Deposits of $4,625.00?
c) Earnest Money Deposit of $10,000.00?

The Loan Amount from Community Choice Credit Union is a credit to loans p/ for $285,000.00.
debit fixed assets-Building $351,901.69.
debit fixed assets-Land $39,100.19.

thanks.
 

#2
cp_acwt  
Posts:
98
Joined:
22-May-2014 1:59pm
Location:
MichigaN
DR asset purchase 385,428.40
DR property tax expense 5,368.22
DR property tax expense 205.26
CR security deposit 4,625.00
CR rent expense 1,890.46
CR earnest money deposit 10,000.00
CR loan payable Comm Choice CU 285,000.00
CR cash paid out 89,486.42

Assets are recorded at all costs necessary to get the asset to its intended state of use. So the asset is recorded at $380,000.00 plus ($11,001.88-5,368.22-205.26). The property tax proration that was paid at closing is expensed. The security deposit, rent expense and earnest money deposit are reversals of the entries that were made when these items were originally paid. Loan payable Comm Choice CU records the loan payable. Cash paid out records the balance due at closing.
 


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