October 30, 2016 admin

Tractor & Implement Net Income

Adjustments to Income

TRACTOR & IMPLEMENT NET INCOME ADDITIONS TO INCOME ACCOUNT
9050

ACCOUNT EXPLANATION
Net income from the sale of new and used tractors and implements.
TRANSACTIONS
  Jrnl. Dr. Cr.
  New tractor sold for cash NV
    Cash Sales—Clearing 1010
      Tractor & Implement Net Income (amount of sale) 9050
    Tractor & Implement Net Income 9050
      Inventory—Tractors & Implements—New 1445
             
  Commissions on tractor and implement sales PR
    Tractor & Implement Net Income 9050
      Accrued Payroll 2410
             
  Advertising expense incurred on tractors and implements P
    Tractor & Implement Net Income   9050  
    Accounts Payable—Trade     2100
COMMENTS
  • This is a control account. The series of accounts from 9050 to 9099 should be used for detailed supporting income and expense accounts.
  • Cost data should be obtained from the subsidiary inventory record.
  • Sales of parts and labor associated with tractors and implements should be recorded in the same accounts as regular vehicle parts and labor sales.