289 Fixed Assets - Other
Assets
Fixed
Synopsis
Account 289 is established to record the acquisition costs of Other Fixed Assets purchased by the dealership and which cannot properly be recorded in any other account.
It is also used to collect the cost of fixed assets purchased but not yet placed into service as well as the cost of construction in process. Once assets are put into service, the total cost of the assets should be put into the normal account classifications and depreciation should commence.
Debits |
Credits |
|
|
Example 1
Record the purchase of mobile office to be used as temporary used vehicle sales office.
Journal: Cash Disbursements
Entry: |
|
Debit |
Credit |
Account 289 |
Other Fixed Assets |
$16,942 |
|
Account 202 |
Cash in Bank |
|
$16,942 |
Example 2
Move the cost of construction in process and fixed assets purchased but not yet put into service to the permanent accounts. (Construction completed and fixed assets placed into service).
Journal: General Journal
Entry: |
|
Debit |
Credit |
Account 286 |
Leaseholds |
$128,589 |
|
Account 284 |
Furniture & Fixtures |
$63,128 |
|
Account 289 |
Other Fixed Assets |
|
$191,717 |
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: