Assets and amoritization

Posted By SRC over 9 years ago

I am finishing up year end for books for our community association. A couple of items I can't get booked. This is my first year end as treasurer and I suspect these are simple questions?

1. We have GIC in our assets that has increased in value in 2014. I don't know how to change the value of this GIC so it is reflected in the assets on the balance sheet?

2. I have calculated the amortization based on CRA criteria for our other assets but now don't know how to book that into the amortization expense line so it appears on our income statement.

Any help?

Thanks, Steve

0 Carlo P over 9 years ago

Hi Steve,

Your GIC can be increased in the General Journal. The other side of the entry would be an expense account of some sort. This would depend on several criteria. Be sure to make a backup and my suggestion would be to create a working test file so you create this Journal Entry in a safe environment. Check all reports for accuracy and if all is well switch to your original company file and repeat the steps

Hope this helps

Carlo
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0 Roger L over 9 years ago

so a business GIC has gone up in value, ie. has generated income ?

wouldn't you debit the GIC asset account and credit an interest income account ?

amortization, you should have amortization contra accounts for each capital asset account

1840 vehicle

1845 accum amortization vehicle

and an amortization expense (5660)

db 5660

cr 1845
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Assets and amoritization

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