Are small tools fixed assets or expenses? I purchased a blade that cost $70. These tools I need for machines to run production.
most of the time is a different tool. It could be industrial needles or different parts for machines, and costs vary from $5.00 - $200
I have an account set up as:
Expense - Repairs and Maintenance
It is different but it might fall under the same account category. If I build an extra room inside my warehouse, I purchased all the materials, and to me sounds like it could be an expense although a fixed asset because in the end it became a small room/building.
- wall & roof sheathing.
- Framing materials.
- Fasteners.
- Interior and exterior finishing materials.
- Plumbing materials and fixtures.
- Materials for the electrical system.
- Windows and doors.
And if we paid a licensed electrician and plumber to do couple job in the warehouse would the transaction be recorded as
contract labor - expense
or Expense - Repair and maintenance?.
Thank you in advance.
