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

  1. The Cost of land acquired

 

  1. The Cost of land sold and otherwise disposed of

 

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.