In This Chapter
Selling an asset
Tracking owner's equity
Doing multiple-state accounting
Obtaining and repaying loans
As your business grows and becomes more complex, your accounting does, too. I can't describe and discuss all the complexities you'll encounter, but I can give you some tips on handling (just about) ten tricky situations.
In QuickBooks, you make journal entries by using the General Journal Entry window, which you get to by choosing Company
To track the depreciation of an asset that you already purchased (and added to the Chart of Accounts), you need two new accounts: a Fixed Asset type of account called something like Accumulated Depreciation and an Expense type account called something like Depreciation Expense.
If you have a large number of assets, keeping track of the accumulated depreciation associated with specific assets is a good idea. You can do this either outside QuickBooks (for example, in an Excel spreadsheet or with your tax return) or inside QuickBooks (by using individual accounts for each asset's original cost and accumulated depreciation).
After you set up these two accounts, you can record the asset depreciation with a journal entry, such as the following one that records $500 of depreciation expense:
The federal tax laws provide ...