Ok I need help from the accountants out there. We just bought a $31,000,000 multifamily building. Our equity portion (downpayment) for it was $7,100,000. How do we book the $7.1 million on our balance sheet?
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I'd say it partially depends on "how you bought it" Primarily meaning, how you financed it.
My instinct would be Debit PP&E, Credit LT Debt by amount financed by debt, and Capital Contributions (in S.E) by the 7.1.
This would be for purchasing the asset and contributing to company.
*Disclaimer: Still a student/intern. have not sat for the CPA
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