Re: Question re. Business Income Statements

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Posted by Natalie-VA on August 12, 2008 at 05:37:40:

In Reply to: Question re. Business Income Statements posted by IB (NJ) on August 11, 2008 at 15:29:32:

Hi IB,

Yes the purchase price and all related "expenses" will eventually fall under "cost of goods sold". I have a separate COGs account for each property.

I do my books similar to Ken, except nothing gets expensed. Everything is considered an asset until it's sold. Then, it gets converted to COGS. If there's a house that gets carried over to a new year, those assets are called "work in progress".

Hope that helps.

--Natalie

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