October 30, 2016 admin

Gain or Loss—Sale of Fixed Assets & Securities

Adjustments to Income

GAIN OR LOSS—SALE OF FIXED ASSETS & SECURITIES ADDITIONS TO INCOME ACCOUNT
9250

ACCOUNT EXPLANATION
Gain or loss resulting from the sale of investments in subsidiaries and affiliates, marketable securities, property, plant, equipment, and other capital assets.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Improved land sold for cash at a profit CR
    Cash in Bank—General 1001
    Accumulated Depreciation—Land Improvements 1705
      Land (Auto Business Only) 1700
      Land Improvements 1701
      Gain or Loss—Sale of Fixed Assets & Securities 9250
           
  Wrecker sold for cash at a loss CR  
    Cash in Bank—General   1001
    Accumulated Depreciation—Company Vehicles   1727
    Gain or Loss—Sale of Fixed Assets & Securities   9250  
      Company Vehicles     1722
COMMENTS
  • The amount of gain is the net value received for the asset sold in excess of its cost or depreciated book value.
  • Account 5200, Rental Vehicle Net Income, and Account 5300, Leased Vehicle Net Income, contain information regarding gains or losses on sales of leased and rental vehicles.
  • Account 4340, Inventory—Demonstrators, contains information regarding sales of demonstrators.
  • Since special treatment of items in this account may be required for income tax purposes, dealers should consult tax counsel if necessary.