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We bought a refrigerator for the office. What account would that go under? A Fixed asset?? Office Supplies?

Forum|Forum|7 years ago
December 11, 2018
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Best answer by arkvalleyinfo

Hi christina.southa! Any property that is convertible to cash that a business owns is considered an asset. Since refrigerators have a useful life that is more than a year, you may include it under Furniture, Fixtures and Equipments as long as it is categorized to a Fixed Asset account type.

On the other hand Office Supplies are normally used for tracking Day-to-Day expenses (e.g. papers, pens,etc). However, Office and Classroom Furnitures such as desks, chairs or cabinets are also not considered as office supply items.

Hope this helps.

Thank You! =)

A

arkvalleyinfoAuthor

Something else to consider -- usually companies set up a threshold for recording fixed assets. For example, maybe $300 is the amount -- anything less than that would be an expense and not set up as a fixed asset. For example, a stapler should last more than a year, but we wouldn't set it up as a fixed asset and calculate depreciation on it. A $50 - $100 microwave would also be expensed.

Usually your accountant or tax professional maintains the details about depreciation. Consult with them about what is right for your business and for help on acquiring or disposing of fixed assets.

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arkvalleyinfoAuthorAnswer

Hi christina.southa! Any property that is convertible to cash that a business owns is considered an asset. Since refrigerators have a useful life that is more than a year, you may include it under Furniture, Fixtures and Equipments as long as it is categorized to a Fixed Asset account type.

On the other hand Office Supplies are normally used for tracking Day-to-Day expenses (e.g. papers, pens,etc). However, Office and Classroom Furnitures such as desks, chairs or cabinets are also not considered as office supply items.

Hope this helps.

Thank You! =)

A

arkvalleyinfoAuthor

Thank you! That's what I was assuming, but I just wanted to make sure.

qbteachmt

"We never calculated or considered depreciation on it."

It might have been part of the tax reporting as Expensed already. Check this to see if the Bookkeeping just wasn't done. Otherwise:

The value of the asset and any recaptured depreciation are moved to Expense as "loss on dispoal of asset."

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arkvalleyinfoAuthor

I bought furniture and have the same question. If I make a "Furniture" account that's a "Fixed Asset" and I 179 it on my taxes, then it moves to "expenses"? Like put make it a sub-account "Furniture" under "Office"? Under office, I have a variety of subcategories that include day to day things (like paper) and other subcategories for things like plants and extension cords. Thanks!

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