Buildings
A fixed asset under the Property, Plant and Equipment caption on the balance sheet. The cost of buildings should include all expenditures directly related to their acquisition or construction:
- materials, labor and overhead incurred during construction
- professional fees and building permits
If there is an old building on a site where you intend to build a new one, and if you purchased the land with that building on it, then the cost of removal of that old building less any salvage value will be part of the cost of your land and not the new building.
Balance Sheet Analysis
Learn how to analyze a balance sheet in terms of company's liquidity and solvency using financial ratios such as the current ratio, quick (or acid) ratio, debt to asset ratio and debt to equity ratio.
Return from Buildings to Sample Balance Sheet
Return from Buildings to Small Business Accounting
