10520 ENTRY NO. 20 [FIXED ASSETS ARE ACQUIRED]
(Revised 5/87)
Nature of Transaction:
Fixed assets (other than that obtained through project prepayments to the Office of the State Architect, the Department of Transportation, or the Department of Water Resources) are acquired.
Journal Entry for General Ledger Accounts:
Debit:
2310 Land
2331 Improvements Other than Buildings
2341 Equipment
2410 Intangible Assets
Credit:
5200 Investment in General Fixed Assets
Source:
Documents:
Claim Schedule
Receipt, letter, or other document evidencing acquisition by gift.
Duplicate copy of Property Record Card, Std. Form 153a.
Transfer of Location of Equipment, Std. Form 158 (for transfers from other agencies).
Work Order, Std. Form 103, or similar form for items manufactured locally.
Livestock Inventories Report
Explanation:
Fixed assets, as defined in SAM Section 8602, are recorded at cost or appraised value in the property accounts. This is to establish accountability for such assets and to fix responsibility for their custody.
Fixed assets may be acquired either by (1) purchase, (2) gift, (3) transfer from other state agencies, (4) construction or development by the departments, or (5) construction under the supervision of the Office of the State Architect, the Department of Transportation, or the Department of Water Resources from funds advanced by the agency. (For the recordation of acquisitions of the latter type, see Entries No. 18 and 19.) Bases of valuation for recordation in the property accounts of property recorded through the entry are as follows:
Purchase: Net cost (after cash discounts) plus sales tax.
Gift: Appraised value at time of acquisition.
Transfer Between Agencies:
Value at which the property is accounted in the books of the transferor agency, if between agencies supported from the same fund. (See SAM Section 8633 if transaction is between funds.) (Transfer between organizational units of an agency supported from the same fund are recorded only in the Property Ledger location unit sub-control records.)
Construction by the Agency:
Actual cost of labor, materials, and equipment items as shown on the work order or similar form.
