oboloo Glossary

Fixed Asset Journal Entry

oboloo Glossary

Fixed Asset Journal Entry

A Fixed Asset Journal Entry is an accounting entry that captures the purchase, sale and depreciation of a company’s fixed assets. Fixed assets can include items like buildings, equipment, furniture and fixtures that have a useful life span of more than one year. The journal entry should include all related costs, such as the cost of the asset, delivery costs, taxes, brokerage fees and any installation costs. The journal entry also records accumulated depreciation over time. By tracking these entries, businesses can assess the value of their fixed assets and manage their cash flow.