284 – Furniture & Fixtures

Fixed Assets

 

Synopsis

Account 284

Debits

Credits

  1. The cost of all furniture, signs, and equipment, and permanent indoor and outdoor signs.

  1. The cost of all furniture, signs and equipment sold, or otherwise removed.

 

 

Remarks:

This account balance represents the purchase price, freight, and installation costs of all furniture, signs, and equipment acquired for retailer use.

 

It is recommended that retailers occupying leased facilities obtain legal and tax advice regarding capitalization of assets permanently affixed to such facilities.

 

All furniture, signs, and equipment should be listed on a fixed asset inventory and depreciation record.  The accumulated total in the cost column should agree with the balance in this account each month-end.

 

Repairs and maintenance costs which ordinarily do not add to the value or prolong the life of the furniture, signs, and equipment should be charged to expense as they occur.

 

When an item included in this account is sold, the total cost should be credited to this account, and the reciprocal accumulated depreciation account relieved.  Any gain on the sale should be credited to Additions to Income – Other (Account 805).  Any loss on the sale should be debited to Deductions to Income – Other (Account 855).

Note: