283 Parts and Accessories Equipment
Assets
Fixed
Synopsis
Account 283 is established to record the acquisition cost of Parts & Accessories Equipment purchased by the dealership and used in the automobile business.
Debits |
Credits |
|
|
Example 1
Record the purchase of a display case in the amount of $800.
Journal: Cash Disbursements and Purchase
Entry: |
|
Debit |
Credit |
Account 283 |
Parts & Accessories Equipment |
$800 |
|
Account 300 |
Accounts Payable – Trade Creditors |
|
$800 |
Example 2
Record the sale of parts bins no longer used in the amount of $350. The Accumulated Depreciation for the parts bins is $3,750.
Journal: Cash Receipts
Entry: |
|
Debit |
Credit |
Account 201 |
Cash on Hand |
$350 |
|
Account 353 |
Accumulated Depreciation – Parts & Accessories Equipment |
$3,750 |
|
Account 283 |
Parts & Accessories Equipment |
|
$3,750 |
Account 905 |
Other Income |
|
$350 |
Comments
A debit balance represents the cost of equipment acquired and built for use in the parts and accessories department. This includes items of a movable nature, not a permanent part of the building, such as:
a. Cabinets
b. Containers
c. Counters
d. Parts bins
e. Shelves
f. Showcases
Note:
ONLY ASSETS USED IN THE OPERATION OF THE DEALERSHIP BUSINESS SHOULD BE INCLUDED IN THESE ACCOUNTS.
Cost of assets should include additional items such as: