Where does the purchase of equipment show up on a profit and loss statement?

Answer 1

The purchase of equipment will not show up directly on a P&L - the journal entry will debit Equipment and credit Cash (or some liability if you're buying it with a loan). As time passes, however, you will debit Depreciation Expense, which will show up on the P&L under Operating Expenses, to account for the decrease in value that comes from using the equipment.

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