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how do you change the value of a land asset ( land value has increase) or a gifted quarter of land ( being added to assets with no costs)
Hi Heather, Fair Market Value changes to land values shouldn't be entered on the balance sheet, instead those FMV adjustments can be done under the Management menu and are then reflected on the Net Worth Statement. The balance sheet should always reflect the purchase price of the asset.
For gifted land, you'd need to do a General Journal entry to increase your land asset account by the appropriate amount (Debit)and that can be offset that against an income account called Contributions or Contribution Revenue (Credit). In situations like this it is always best to check with your accountant or tax specialist to determine the correct entry as there are tax implications depending on where the donated asset is coming from and what type of business you are running (SP, Part, Corp)