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To: Note to file
From: Property Accounting
Date: January 10, 2002
Re: Sale of property – Temple Stadium
Below is the approved journal entry to record the sale of land & buildings. This methodology was agreed to between the departments of Financial Reporting, Controllers Office & Property Accounting. In this example is the sale of Temple stadium and the gain is first being recorded to NIP (87/9000/000), then it is transferred to unrestricted plant (80/6712/000) via the 7970 transfer code.
The final destination of the gain/loss is ultimately a managerial decision, however, for the Stadium it was determined to the unrestricted plant fund.
Sale of land asset on January 08, 2002 |
|||
1011-10/9000/000 |
x,xxx,xxx.xx |
Cash |
|
1800-87/9000/000 |
xxx,xxx.xx |
Land |
|
1830-87/9000/000 |
xx,xxx.xx |
Land Imp-0046 |
|
1840-87/9000/000 |
xx,xxx.xx |
Bldg-0058 |
|
1930-87/9000/000 |
xx,xxx.xx |
Land Imp-0046 |
|
1931-87/9000/000 |
xx,xxx.xx |
Bldg-0058 |
|
7892-87/9000/000 |
x,xxx,xxx.xx |
Gain |
|
Book cash receipt, dispose of assets & depreciation & recognize gain. |
|||
7970-87/9000/000 |
x,xxx,xxx.xx |
Tsfr Gain |
|
7970-80/6712/000 |
x,xxx,xxx.xx |
Tsfr Gain |
|