In addition, our teacher education and endorsement programs are accredited by the Teacher Education Accreditation Council (TEAC) , which is one of two national accreditation agencies for the field of education. TEAC accreditation demonstrates that we work closely with the Virginia Department of Education (VDOE) to make sure our VDOE-approved programs are in line with best practices to help our students become highly qualified educators once they have completed their program. We are also Association of Christian Schools International (ACSI) accredited.
You don’t say anything about the contract provisions, such as – who is the owner of asset at the moment of the first payment? When does your company take risks associated with this machine (at 10% payment? after delivery?). But for me, it seems you are just paying advance payment and the ownership comes at delivery. If this is the case, then the entries would be:
1) Purchase of machine (contract+payment of 10%) – just book the advance payment for the asset. There are probably no liabilities resulting from the contract, although I have not seen it.
2) Delivery of a machine plus payment of 90% – this is the moment to book the acquisition of asset. But this is NOT the moment of starting the depreciation, because the machine will be unpacked for more than 1 year.
3) When owner unpacks and starts using the machine – start recognizing depreciation.
Hope it helps – let me know!
Have a nice day!