287 Information Technology - Hardware
Assets
Fixed
Synopsis
Account 287 is established to record the acquisition cost of Information Technology computer hardware purchased by the dealership and used in the automobile business.
Debits |
Credits |
|
|
Example 1
Record the purchase of personal computers for the accounting office in the amount of $4,500.
Journal: Cash Disbursements and Purchase
Entry: |
|
Debit |
Credit |
Account 287 |
IT – Hardware |
$4,500 |
|
Account 300 |
Accounts Payable – Trade Creditors |
|
$4,500 |
Comments
A debit balance represents the initial cost of IT Hardware including shipping costs and sales tax.
IT Hardware is any piece of computer equipment - whether it’s a laptop, desktop, computer monitor, mouse, keyboard, printer, etc.
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: