Carrying (Book) Value Journal Entries

Diving into the concept of carrying value, also known as book value, Nick Palazzolo makes this fundamental accounting principle relatable and easy to grasp. Using everyday examples like cars, houses, and personal debt, he explains how assets and liabilities are recorded on the balance sheet. Nick details how various factors such as payments, amortization, and impairments affect the carrying values of bonds, leases, property, plant, and equipment (PP&E), and intangible assets. He also introduces the impact of capital improvements and depreciation on these values, highlighting practical scenarios where these adjustments occur. Whether discussing the subtle complexities of intangibles or the straightforward calculations for accounts receivable, Nick ensures a comprehensive understanding of how and why carrying values are crucial in accounting practices.