Purchases before startup

accountingquestionsaccountingquestions Member Posts: 2

I'm not sure where and how to add expenses or if I even should for things prior to starting the business. In particular:

Inventory - where do I put it as it was already paid for and I know I will need to draw for it as it is sold? Do I give it a retail or purchased value?
Assets - computers, etc.
Other expenses - advertising, web hosting, etc.

Thanks for any tips!

Comments

  • JamieDJamieD Administrator Posts: 650 admin

    Hi @accountingquestions. Right now, inventory tracking is not something that is currently offered in Wave, however, in your particular situation it sounds like that you may need to create a fixed asset account for your particular item and track the value of this item based on it's use, etc; https://support.waveapps.com/hc/en-us/articles/208623546-Simple-inventory-entry-tracking-in-Wave -- hope this helps!

  • accountingquestionsaccountingquestions Member Posts: 2

    I guess i'm confused. on page 74 of your fearless accounting with wave guide you go over how to deal with inventory - i I am going to use the periodic method. My question is how do you get started if you are bringing already owned inventory assets into the new business - where do you place this asset if you have no transaction for the purchase as it was already owned on startup?

  • MikegMikeg Member Posts: 257 ✭✭

    If the owner is contributing inventory then, debit inventory credit owners equity at your cost. Be sure to have a bill of sale to the business. Same with any other item paid outside of the business. The credit is either owner equity or loan from owner.

    edited January 21, 2019
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