When a company purchases equipment and devices, the accountant needs to record the transaction in the fixed asset account. This is because the equipment is considered a long-term asset of the company and not a short-term expense. Therefore, we can use the following entry to reflect this transaction:
Fixed Asset Account Debit
Bank/Accounts Payable Credit
This entry shows that the company made a payment from the bank or owed an account to a supplier to purchase new equipment.
Since the purchase of equipment may involve transportation and installation costs, these costs also need to be recorded in the relevant accounts. We can use the following entry to record these costs:
Transportation Costs Account Debit
Installation Costs Account Debit
Bank/Accounts Payable Credit
This entry shows that the company paid for the costs associated with transporting and installing the equipment to the target location.
After purchasing the equipment and devices, the company also needs to consider depreciation. Depreciation is the reduction in value of a long-term asset over the course of its use. A company usually charges depreciation expense at a certain rate over a certain period of time based on depreciation rules and records it in a depreciation expense account. We can use the following entry to record depreciation expense:
Depreciation Expense Account Debit
Accumulated Depreciation Account Credit
This entry shows that the company accrues a certain amount of depreciation expense and records it in the relevant account.
Accounting entries for the purchase of equipment and devices in an infrastructure project include entries to record the transaction in a fixed asset account, entries to record the cost of transportation and installation, and entries to accrue depreciation expense. Doing so will accurately reflect the company's financial position and changes in asset values. I hope this information has been helpful!