fixed assets treatment and "place in service"

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#1
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Client prepaid for some equipment and now the equipment arrived but is not ready for use yet.
Should I reclassify the prepayment to fixed assets? Or should I place the equipment in a transitional account until it is ready for use?
Thank you!
 

#2
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An asset is placed in service when it's functional and available for its intended use. I would categorize prepaid equipment as a current assent on the balance sheet until that time.
 

#3
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Thank you!
 


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