Equipment—Company Vehicles—Cost – Ford Online Accounting Manual

Assets

EQUIPMENT—COMPANY VEHICLES—COST		ASSET ACCOUNT
		1722

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Cost of all vehicles, excluding demonstrators, in dealership service for use in the automobile business. Includes tow trucks, parts trucks, service courtesy cars, driver training cars, motorcycles, antique vehicles used for display, and racing vehicles.

TRANSACTIONS

			Jrnl.	Dr.	Cr.

New car transferred to driver training service			G
	Company Vehicles			1722
		Inventory—New Cars			1300

Motorcycle purchased for service pickup and delivery use			CD
	Company Vehicles			1722
		Cash in Bank—General			1001

Sale of tow truck for cash at a gain			CR
	Cash in Bank—General			1001
	Accumulated Depreciation—Company Vehicles			1727
		Company Vehicles			1722
		Gain or Loss—Sale of fixed Assets & Securities			9250

COMMENTS

Detailed records should support this account.
Vehicles used by management employees should be charged to Account 1340, Inventory—Demonstrators.