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@jmcglynn1 wrote:
Thank you for your help. Someone else in this community said accumulated amortization should not be seen as a negative number on the balance sheet so I am confused on this... I credited accumulated amortization and debited amortization expense. The QuickBooks Online Balance Sheet shows this:
Fixed Asset $850,000
Accumulated Amortization - $50,000
Total Fixed Asset $800,000
Is this correct? The other community member said the Accumulated Amortization would not be a negative number but QuickBooks would still subtract the amount because it considers it a Contra Asset.
Yes, the Accumulated Depreciation would be a negative number, always as a Contra Asset account.
Normally, you will have the Fixed Asset type as a parent account in QBO and then you will have two sub-accounts (original cost and accumulated depreciation) under that FA account type.
Example:
Fixed Asset for Computers:
Original Cost = $850,000
Acc Depreciation = -$50,000
Total FA for Computers = $800,000
I hope this helps!
