Organization Expense – Ford Online Accounting Manual

Assets

ORGANIZATION EXPENSE		ASSET ACCOUNT
		1833

Expenditures resulting from the original incorporation of the dealership.

			Jrnl.	Dr.	Cr.

Payment of attorney’s fees for incorporation of dealership			CD
	Organization Expense			1833
		Cash in Bank—General			1001

This account includes such items as legal cost for articles of incorporation and charter, purchase of stock certificate forms and tax stamps, and cost of raising permanent capital.
Subsidiary records should support this account.
Since special treatment of this account may be required for income tax purposes, dealers should consult tax counsel as necessary.
Start-up costs for salaries, supplies, utilities, etc., should be recorded in appropriate operating expense accounts.