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For other than tax reporting purposes, it's financial statements should be the same as any other business... fixed assets and accunmulated depreciation would be on the balance sheet and depreciation expense would be on the income statement. For tax reporting purposes, it depends on how large the company is and how it is taxed. If it is taxed as a Partnership or S-Corporation - below a certain level (don't recall the dollar figure off the top of my head), the company is not required to fill out Shedule L (typically page 4 of the return - the top of which is a balance sheet and it reflects the fixed assets and accumulated depreciation as totals), but it MAY CHOOSE to fill it out and report it anyway. Many tax preparers tend to not fill it out if they don't have to as it eliminates a lot of work on their part. If the company is taxed as a proprietorship then the fixed assets will never show on the return, except as a subschedule that details the depreciation expense on Schedule C.
What else can I help you with?
How can a limited company value its fixed assets to best inform those who use its financial reports?
revaluating the assets and dispose the unneccessary
Are fixed assets expenses?
Yes and no. When a company purchases a fixed asset it is expensed through depreciation over the useful life of the asset.
Write off fixed asset entry?
When the Company decide to write off the fixed asset, the following entries will be passed: Dr. Accumulated Depreciation Dr. Loss on Asset written off (if any) Cr. Fixed Asset ( at cost) The company would write off the fixed asset in the following circumstances: 1) The company may write off the fixed asset, if the assets are no longer in feasible use. 2) The fixed assets have been fully depreciated. In case 1 above, the company might incurred a loss on fixed asset written down if the net book value is > nil. Whereas, when the assets have been fully depreciated ( as in case 2), no losses will be incurred upon written off.
What is the journal entry to write off fixed assets?
When the Company decide to write off the fixed asset, the following entries will be passed:Dr. Accumulated DepreciationDr. Loss on Asset written off (if any)Cr. Fixed Asset ( at cost)The company would write off the fixed asset in the following circumstances:1) The company may write off the fixed asset, if the assets are no longer in feasible use.2) The fixed assets have been fully depreciated.In case 1 above, the company might incurred a loss on fixed asset written down if the net book value is > nil. Whereas, when the assets have been fully depreciated ( as in case 2), no losses will be incurred upon written off.
What Types of fixed asset?
1)Tangible fixed asset 2)Intangible fixed asset 1)Tangible fixed asset 2)Intangible fixed asset
Is a desk a fixed asset or a current asset?
A fixed asset.
Are expenses assets?
Yes and no. When a company purchases a fixed asset it is expensed through depreciation over the useful life of the asset.
Where is the retirement of an asset recorded?
The "retirement" or "disposal" (as it's usually listed as) is recorded in a couple of different ways depending on how the asset is disposed of. One entry that will not change regardless of how the company disposes of the asset is the account related to said asset. For example, if the company is disposing of a truck, the one account entry that will not change will be Equipment-truck, this account will be credited for the balance. The fact that the fixed asset account has a debit balance, we now credit the account to bring it to a zero balance and remove the truck from our records. Company's may choose to dispose of, sale, or trade the fixed asset. Disposing of the fixed asset does not involve the exchange of money or another asset. Selling of the asset involves receiving cash for the asset. Trading involves receiving another asset in exchange for the asset the company is disposing of. This transaction will affect the balance sheet as it affects the assets of a company.
Is good is a fictitious asset or fixed asset?
fixed
Is Prepaid insurance is an asset account?
Prepaid insurance is that amount which is paid in advance for future insurance so until actual insurance facility is availed by company it is an asset of company and if it is for short term or will be availed in current fiscal year then it is current asset otherwise a fixed asset, if some portion is usable in current fiscal year then only that portion will be current asset and remaining will be fixed asset.
Is carpet an asset?
It as a Fixed Asset if it is not for resale purposes and is used for more than 1 accounting period. But it might not be recorded in the B.S as a Fixed asset if the company feel that the figure is immaterial enough to be recorded. (It does not affect decisions of stakeholders).
Is car a fixed asset or current asset?
fixed assest
