Buildings & Improvements (Vehicle Business Only) – Ford Online Accounting Manual

Assets

BUILDINGS & IMPROVEMENTS (VEHICLE BUSINESS ONLY)		ASSET ACCOUNT
		1710

Cost of buildings, building additions, and improvements purchased or constructed for use in the vehicle business.

			Jrnl.	Dr.	Cr.

Progress payment on construction of building			CD
	Buildings & Improvements (Vehicle Business Only)			1710
		Cash in Bank—General			1001

Cost of central air-conditioning system purchased on open account			P
	Buildings & Improvements (Vehicle Business Only)			1710
		Accounts Payable—Trade			2100

Sale of building for cash at a gain			CR
	Cash in Bank—General			1001
	Accumulated Depreciation—Buildings & Improvements			1715
		Buildings & Improvements (Vehicle Business Only)			1710
		Gain or Loss—Sale of Fixed Assets & Securities			9250

This account includes fees to attorneys and architects and the cost of grading, excavating, fixtures, and other items in connection with the construction of new buildings. Additions or improvements to existing buildings, such as showroom partitions, central air-conditioning, and automatic fire-sprinkler systems should also be included.
A lump sum purchase of land and buildings should be distributed to the appropriate asset accounts on the basis of relative fair market values. This may be accomplished through the use of independent appraisals, assessed valuation for property tax purposes, or other equitable means.
Buildings not used in the vehicle business should be included in Account 1830, Other Assets.
Buildings and improvements on leased land should be included in Account 1730, Leaseholds & Leasehold Improvements.
Detailed fixed asset records should support this account.