289 Other Fixed Assets

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.

Debits

Credits

  1. The cost of Other fixed assets

 

  1. The cost of Other Fixed Assets when sold or otherwise disposed

 

Example 1

Record the purchase of a boat in the amount of $60,000.

Journal: Cash Disbursements and Purchase

Entry:

 

Debit

Credit

Account 289

Other Fixed Assets

$60,000

 

Account 202

Cash in Bank

 

$60,000

Comments

This account is provided to show extraneous fixed assets that are used in franchise operations.  This account should show the combined balances of all accounts representing the cost of any fixed assets that are used in operations, but which are not otherwise provided for in one of the regular fixed asset accounts.  This would include such items as boats, airplanes, recreational property, 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:

 

  1. Expenses incidental to securing title
  2. Installation and construction costs, including interest during construction
  3. Accessories and optional equipment
  4. Freight
  5. Sales Tax