Capitalise the machine and record depreciation

Continue the Acme case

The delivered Aster machine has a $6,000 accepted acquisition cost. Its invoice was already posted to Equipment acquisition clearing. Capitalisation must not create another supplier liability.

Role and prerequisites

The fixed-asset accountant prepares acquisition and depreciation. Acme's approved accounting policy determines eligibility, cost, useful life, start convention and account mapping. For this exercise only, use a 60-month, zero-residual, straight-line life and one full October charge. These are training policy inputs, not recommended statutory estimates.

Acquire and depreciate

1. Select the supported acquisition source and attach the order, receipt and invoice. Record the machine's business name, custodian, location, in-service date and approved depreciation inputs.
2. Complete the acquisition route and verify its GL acknowledgement. Acme's clearing mapping reclassifies debit Equipment $6,000, credit Equipment acquisition clearing $6,000. Confirm clearing is zero and the payable remains settled.
3. Select the eligible machine and October period for depreciation. Review the amount before executing the supported action: $6,000 ÷ 60 = $100 for this training convention.
4. Confirm the source journal: debit Depreciation expense $100, credit Accumulated depreciation $100. Reopen the asset and period history.

Verify the saved result

One machine exists with original cost $6,000, accumulated depreciation $100 and carrying amount $5,900. There is one October depreciation result; repeating the same period does not double the charge. An asset with missing policy inputs requires correction before processing.

For a later disposal, the accountant prepares the exact retirement evidence and an independent authority decides in Core; history is retained. This course does not claim asset transfer or impairment workflows for releases that do not support them. Continue to personnel and payroll.