Liabilities and Net Worth Notes Payable Accruals Accounts Payable Long-Term Debt Taxes On Income Net Worth Customer Payables   Notes Payable   Notes Payable—New Vehicles & Demonstrators Notes Payable—New Vehicles & Demonstrators—Other Franchise Notes Payable—Used Vehicles (Non CPO) Notes Payable—CPO Vehicles (Franchise Only) Notes Payable—Remarketed Vehicles Notes Payable—Recreation Vehicles Notes Payable—Short Term—Other Notes Payable—Long Term—Current Read more about Liabilities and Net Worth Menu[…]

Liabilities and Net Worth NON US FIXED ASSETS REVALUATION NET WORTH ACCOUNT 2870 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Balance in this account represents the variance between actual market value of fixed assets (land, property, building, machinery, equipment, etc.) and original cost as determined by a specialist, in accordance with tax laws. TRANSACTIONS   Jrnl. Read more about Fixed Assets Revaluation[…]

Liabilities and Net Worth NON US⁄Dealer Development Only OTHER CAPITAL RESERVES NET WORTH ACCOUNT 2865 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Cumulated balance of all other capital reserves approved by the Board of Directors. (Corporate life time up to date.) TRANSACTIONS   Jrnl. Dr. Cr.   Other Capital reserves approved by the Board of Directors Read more about Other Capital Reserves[…]

Liabilities and Net Worth NON US⁄Dealer Development Only LEGAL RESERVE NET WORTH ACCOUNT 2860 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Cumulated balance of legal reserve. (Corporate life time up to date.) Mandatory accrual in Mexico – Article 20 of LGSM + 5% of After Tax Net Profit, up to 20% of Capital Stock. *LGSM = Read more about Legal Reserve[…]

Liabilities and Net Worth NET PROFIT OR (LOSS) AFTER INCOME TAX NET WORTH ACCOUNT 2850 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Clearing account used at year end to reflect the net profit or loss, after income taxes, for the current year. TRANSACTIONS   Jrnl. Dr. Cr.   Entry to close net profit, after income tax, Read more about Net Profit or (Loss) After Income Tax[…]

Liabilities and Net Worth PARTNERS’ OR PROPRIETOR’S DRAWING NET WORTH ACCOUNT 2840 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Amount of cash or fair market value of merchandise withdrawn, other than for salaries, by the partners or proprietor during the current year. TRANSACTIONS   Jrnl. Dr. Cr.   Cash withdrawn by partner for personal use CD Read more about Partners’ or Proprietor’s Drawing[…]

Liabilities and Net Worth PARTNERS’ OR PROPRIETOR’S INVESTMENT NET WORTH ACCOUNT 2830 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Amount of cash or the fair market values of other assets invested in the business by the partners or the proprietor, including net earnings retained from prior years. TRANSACTIONS   Jrnl. Dr. Cr.   Cash and property Read more about Partners’ or Proprietor’s Investment[…]

Liabilities and Net Worth DIVIDENDS DECLARED NET WORTH ACCOUNT 2820 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Cash or fair market value of stock dividends declared during the current year by the board of directors. TRANSACTIONS   Jrnl. Dr. Cr.   Cash dividend declared by board of directors G     Dividends Declared 2820     Read more about Dividends Declared[…]

Liabilities and Net Worth RETAINED EARNINGS NET WORTH ACCOUNT 2810 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Net profit, after income tax and dividend distributions, accumulated in prior years and retained in the business. TRANSACTIONS   Jrnl. Dr. Cr.   Entry to close net profit for the year, after income tax, into this account G   Read more about Retained Earnings[…]

Liabilities and Net Worth TREASURY STOCK NET WORTH ACCOUNT 2803 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Cost of Preferred or Common stock of the dealership corporation reacquired by gift or purchase but not legally retired. TRANSACTIONS   Jrnl. Dr. Cr.   Purchase of outstanding Common stock for cash at a premium CD     Treasury Read more about Treasury Stock[…]