Capital Investment

I have invested in a building which I am going to rent out. Is it Dr Building Cr Capital?

The net Income I receive from renting the building I want to build another one to sell. The building expenses on this one should put in Expense Account or Fixed asset?


Thank you for your questions.

Yes, the money you invested into a rental building would be a DEBIT to Building and a CREDIT to Capital. :)

Any rental income that you put towards building expenses that are constructional improvements would be a DEBIT to Fixed Asset.

Great questions, thanks again!

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Capital Lease

Hi, We lease a computer equipment for $10,000 that will be pay off within 4 years. This is a capital lease. Now I need to write a check for $700 using enter bill. What account should I use for prepayment in Quick Books?
Thank you.

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Capitalize

What does it mean to Capitalize?

To capitalize means to record the amount of an item purchased in the balance sheet account instead of the profit and loss statement.

For example, let’s say that your company purchases a new LapTop Computer for your office and the cost of the computer is $1,200. Since the cost is over $500, your company should capitalize the cost of the computer.

This means that the computer will be recorded as an asset in an equipment account and will be reported in the property, plant and equipment section of the balance sheet. The cost of the computer will be depreciated over it's useful life.

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Capitalizing Homeowners Association Dues

by Karen
(Montana, USA)

What portion of homeowners association dues can be capitalized when part is dues and part is capital reserve assessment?

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Investment

An Investment (not owners equity) what category is it labeled under on the chart of accounts?

I will need more information...

Exactly what kind of investment? (Cash? Property? CD? Other?)

Also, who made the investment?

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Refund of Capital Credits

We received a refund of capital credits from 1988 and 1987 of about 50.00 this year from our electric cooperative. Is it income? How/where do I show this on my tax form?

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Regarding Capital Allowance

May I know the formula how to calculate capital allowance with thanks.

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Sale of Capital Stock

How do I record sale of capital stock for cash

If you sold 100 shares of Capital stock for 1,000 cash you would record the transaction as follows:

DEBIT 1,000 Cash
CREDIT 1,000 Capital Stock

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Tracking Capital Investments

by Terri
(Lexington, KY)

On the quiz the question is "you use an asset account to track capital investments....true or false. The answer shows false. What type of account is used to track capital investments?

Hi Terri,

In this instance, the answer is supposed to be an equity account. An example would be when an owner makes a capital investment of money into the business, the resulting transaction would be to debit the bank account and credit the Owner's Equity - Capital Contributions account. I will make sure to update the answer key to include detail for false answers. Thank you for your question!

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What Type of Account is a Capital Account?

My boss is putting money into his company from his personal account. Where do I put that money when I make the deposit?

When you make the deposit of money from his personal account, you should Debit the Bank Account (Asset) and Credit the Owners Contributions Account (Equity).

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