This form is an Asset Purchase Agreement. The buyer agrees to purchase from the seller certain assets which are listed in the agreement. The form also provides a listing of certain assets which will be excluded from the sale. The form must be signed in the presence of a notary public.
Purchase Of Asset Double Entry In San Diego
Category:
State:
Multi-State
County:
San Diego
Control #:
US-00418
Format:
Word;
Rich Text
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When a plant asset is purchased for cash, its acquisition cost is simply the agreed on cash price. When you first purchase new equipment, you need to debit the specific equipment (ie, asset) account.And, credit the account you pay for the asset from. The journal entry is a credit to Accounts Payable (to increase it, since it's a liability) and a debit an expense account. The acquisition cost of a plant asset is the amount of cost incurred to acquire and place the asset in operating condition at its proper location. In the second entry, we debit the cash account and the credit accounts receivable account.