If machinery is bought by signing a promissory make a note of will be considered an asset and a liability?
all the set up for a company is a write past its sell-by date for i think 3 years as it depreciates but the irs will answer that for free
To record the purchase of machinery with a make a note of
Debit machinery (to record the asset on the books)
Credit Note payable (to record the liability on the books) Source(s): I hold a BS in accounting
The machinery will be your asset and the note(loan) will be the liability.