October 30, 2016 admin

Inventory—Tractors & Implements—New

Assets

INVENTORY—TRACTORS & IMPLEMENTS—NEW ASSET ACCOUNT
1445

ACCOUNT EXPLANATION
Cost of new tractors and implements on hand for sale.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Purchase of new tractor for cash CD
    Inventory—Tractors & Implements—New 1445
      Cash in Bank—General 1001
             
  Costing new implement sold NV
    Tractors & Implements Net Income 9050
      Inventory—Tractors & Implements—New 1445
COMMENTS
  • The description and cost of new tractors and implements should be entered on a subsidiary inventory record when purchased. At month end, a physical inventory should be taken and reconciled with the balance in this account.
  • Account 9050 is a control account. Sales, cost of sales and expenses associated with tractor and implement transactions should be recorded in supplementary accounts. Accounts 9051-9099 are available for this purpose. See Adjustments to Income.