The accounting for a car dealership is quite complicated, since there are many profit centers, fixed assets, and employees, not to mention the large vehicle inventory. In the Car Dealership Accounting course, we cover all aspects of a dealership's accounting, including the underlying accounting system, profit center reporting, and the accounting for all types of sales, expenses, liabilities, and equity. Dealership-specific topics include floorplan interest, contracts in transit, and factory receivables. The course also covers how to account for payroll and the steps needed to close the books.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify the normal account balances for the accounts used by a car dealership.
Specify how information is stored and posted in a dealership accounting system.
Identify the basis of accounting choices that a dealership can make.
Recall the structure of a car dealership's financial statements.
Identify how contracts in transit are recorded by a dealership.
Recall the accounting used by the various profit centers of a dealership.
Specify how a dealership accounts for holdbacks.
Recall the accounting for new and used vehicles.
Identify the accounting for work-in-process labor.
Specify the accounting used for each of the expenses incurred by a dealership.
Recall the accounting for a floorplan loan.
Identify how a dealership would account for policy work.
Specify the choices available to account for bad debts.
Recall the underlying concepts used to account for fixed assets.
Identify the tax reporting structure used by governments to collect sales and use taxes.
Specify the journal entries needed to process payroll for a dealership.
Major Topics
Recording Transactions in an Accounting System
The Ledger Concept
Cash Basis vs. Accrual Basis Accounting
Accounting for Dealership Expenses
