Is it right for a $15000 computer bought on 30/6/07 to be recorded as an expense for that period?

Question

On the income statement.

Or does it not fit in with what an expense is?

Perhaps it should be recorded as an asset then a depreciation schedule written?

Any help appreciated, thanks

Answer 1

Take the allowable capital cost allowance.

Answer 2

a computer is an asset.
dr computer (office equipment) (asset)
cr cash (if paid in cash/accounts payable if loaned)
after that compute the depreciation and every year you have a depreciation expense
dr depreciation expense
cr accummulated depreciation

computer as an asset is to shown on the balance sheet as for the accummulated depreciation

depreciation expense goes to the income statement

Answer 3

I agree with Helping.... A computer is an asset if you purchased it. Therefore the purchase figure would go in the cash flow statement, not the profit loss statement. Then the computer would be in the balance sheet. this would mean that it would have to be depreciated using the normal method.

Answer 4

is it for personal use
or in the home office
??????

it all depends on you file for a home office