The Scheduling Process
In financial accounting, fixed assets are posted in scheduled accounts that are controlled. Being controlled in the schedule simply means the fixed asset is assigned a control number that keeps track of changes to the assets, any new purchases, sales, or depreciation.
Using the above account listing, let’s take a look at what would appear Fixed Asset Schedule for account 261, Mechanical Equipment (you can also click on the screenshot to enlarge):
Mechanical Equipment Schedule – Acct 261
Date / Beginning Balance / Control # / Ending Balance
- 5/1/10 / $30,000 - Beginning Balance
- 5/2/10 / $10,000 / Frame Machine Purchase / Frame510 / $40,000
- 5/15/10 / $5,000 / Depreciation Parts Washer / PartW4/09 / $35,000
- 5/21/10 / $15,000 / Alignment Machine Purchase / Align5/10 / $50,000.00
- 5/31/10 / $50,000 - Ending Balance
If we take a look at the Fixed Asset Schedule for account #261 – Mechanical Equipment, we can see the detail and activity for any given month or period. The control numbers you see in screenshot to the right don’t have to be numeric in nature and are often a short description of the asset followed by date purchased. Invoices can also be used as control numbers.
By looking at this Mechanical Equipment Schedule for the month of May, you can see what the summary total of this account on the balance sheet comprises. During the month of May, a frame machine was purchase, the parts washer was depreciated in value, and an alignment machine purchase was made.