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If you record the office chair as a fixed asset, you also must depreciate the chair over its expected useful life. Useful Life The office chair must be useful to your business for more than one year for you to classify it as a fixed asset. Most companies use an office chair for longer than one year, so barring an unforeseen circumstance, your office chair likely meets this standard. Capitalization Limit Whether you will classify your office chair as a fixed asset or expense depends on the second criteria to classify a purchase as an asset: whether the cost of the chair is over or under your company's capitalization limit. Your company's capitalization limit is a bar set by you and your accountant as criteria to determine what constitutes an expense and what constitutes an asset. If you do not know your company's capitalization limit, speak to your accountant before recording this entry. If the cost of the chair is higher than the capitalization limit, record the chair as a fixed asset.
If the cost of the chair is lower than the capitalization limit, record the chair as an expense. Depreciation To depreciate an asset, you expense the reduced value of the item over time. For example, if you determined that your chair lost 25 percent of its value each year, then each year, for four years, when you record depreciation, you would increase the expense account for the office with a debit and decrease the asset account for furniture with a credit. Fixed Asset Record the journal entry for the purchase of the chair as a fixed asset. Increase the asset account you have set up for furniture with a debit for the amount of the purchase. If you paid cash for the chair, decrease the asset account "cash" for the amount of the purchase. If you bought the chair using credit, increase the accounts payable account with a credit to accounts payable for the amount of the purchase. Expense Record the journal entry for the purchase of the office chair as an expense. Increase the expense account you have set up for office furniture with a debit for the amount of the purchase.
If you paid cash for the office chair, decrease the asset account "cash" with a credit for the amount of the purchase. If you used credit to buy the chair, increase the accounts payable account with a credit to accounts payable for the amount of the purchase. /Getty Images Suggest an Article CorrectionHow To Choose A Desk Chair How To Style Your Desk Price: Low To High Price: High To Low Ratings - High to Low Page 1 of 3 1 - 48 of 48 items Behind every successful essay, presentation, and work project, is a fantastic office chair! Here at Argos we have a vast selection of office chairs from simplistic folding chairs, to supremely stylish real leather office chairs; we are sure to have something to suit every style and budget. You can be the envy of your colleagues by purchasing the Guildford Executive Suede chair; or you can simply pick up a comfortable and practical chair at a great price, we have something for everyone. Be sure to also check out our professional back support products to provide you unbeatable comfort whatever your condition.
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offers a wide selection of office chairs, desks, tables and furniture collections for your workspace. Every office has a unique style, and our expanding assortment includes the furniture that best fits your work environment. has the office furniture you need to get work done. has the chairs to help your associates sit comfortably during work, breaks and meetings. provides you with a wide range of chair options that serve different purposes and offer comfort. also offers great support and assistance to help you plan and design the perfect work environment that meets your budget and your needs. Contact our office Furniture Specialists for free assistance with personalized furniture planning and one-on-one assistance to guide you through the furniture buying process. Also, check out our Great Spaces page to discover furniture solutions with everything you need to outfit your entire office. Guest & Reception Chairs Folding & Stacking Chairs Sit & Stand Desks