Purchases of inventory

[wsheldahl@qx.net]

On Sun, Dec 08, 2002 at 08:17:14AM +0800, S. Barret Dolph wrote:
> If I purchase items such as CD's or Books for my school how do I enter
> the transaction so that the value of the items is listed as assets. 
> 
> Cordially,
> S. Barret Dolph
> Taipei Taiwan
> 
> Example: Purchase of 1000 CD's @ 40 per disc. Retail value is 1.00 per
> CD. (Taiwan $.)
 
First create an asset account that you'll use to track the value of
the assets. Then to record the purchase, open the register of the
checking account or credit card account used to buy the CD's, and
instead of recording it to an Expense account, record it as a
transfer to the Asset account. If you pay any sales tax or shipping
and handling charges, you may want to do it as a split transaction
so that any tax or shipping charges are recorded as actual expenses,
and only the actual price of the item is recorded.

Then you just have to worry about depreciating the items. :-)

-- 
Wes Sheldahl
wsheldahl@qx.net