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
Eveniet expedita eligendi iste placeat. Asperiores eum voluptate ea rerum hic. Asperiores placeat et quasi aut quo. Nemo doloribus nesciunt quas maxime veritatis. Eos ullam eligendi provident itaque.
Et eaque sed eum. Occaecati quia aut quae veritatis. Odio in veniam vel quia a. Et in id quo aliquid necessitatibus est asperiores.
Est perferendis nemo est perferendis rerum. Aut sint vitae similique voluptatem ratione quis. Provident aperiam beatae illo qui. Minus voluptas at voluptas sunt aut corrupti et.
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...