[GNC] Assets vs. expenses vs. income entry

[gnu Gord]

I'm unsure of the best way to record the adding/modifying of an asset.
Should the transaction go directly to an asset account or an expense
account then create an asset? Let me explain.

If, for example, I buy a car that costs me $1000 and pay for it from my
chequing account, no loan involved.
Should $1000 go from my chequing account to an asset account called 'car'
or to an expense account called 'car' then create a new account in asset
called 'car' with 'equity:opening balance' of $1000?

Would the latter option be more flexible? If the car was really worth $2000
but I only paid $1000 for it I could record an asset worth $2000 but an
expense of only $1000.

What if the car increased in value somehow (unlikely)? Would this be
reported in the asset account as 'equity:asset change' or in an income
account as income or something else?