When you acquire an asset, the cost of the asset is recorded on your company balance sheet. If you spent cash to acquire the asset, your cash account is reduced. If you borrowed money, your liabilities are increased. Here are some examples of how asset acquisitions are recorded in QuickBooks.
You write a check to place a $400 deposit with your utility company:
You take out a $100,000 mortgage on a building and also make a $10,000 cash down payment:
When you create a journal entry to record depreciation expense, these accounts are affected:
If you sell a fixed asset that cost $1,000 for $800 and you had previously recorded a depreciation expense of $520, here are the accounts that are affected: