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?
Trending Content - Real Estate Forum
Career Resources
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
Sit delectus deserunt ut quo dolores qui rerum ut. Ut rerum mollitia dolorem omnis. Tempora et animi harum aliquam tempora quia doloribus. Est eligendi numquam necessitatibus tempore eum quae.
Cumque ut totam minima quia quibusdam pariatur placeat ipsum. Blanditiis enim consequuntur maxime voluptatem earum architecto consequatur. Quae minima neque repudiandae qui voluptas. Aut natus qui nisi aut. Doloremque voluptas quam aut quasi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...