280 Land - Auto Business Only
Assets
Fixed
Synopsis
Account 280 is established to record the acquisition price of Land purchased by the dealership and used in the automobile business.
Debits |
Credits |
|
|
Example 1
Record the $1,500,000 purchase of land that will be used to build a new dealership.
Journal: Cash Disbursements
Entry: |
|
Debit |
Credit |
Account 280 |
Land (Auto Business Only) |
$1,500,000 |
|
Account 202 |
Cash in Bank |
|
$1,500,000 |
Comments
A debit balance represents the cost of land purchased by the dealership.