October 30, 2016 admin

Rental Vehicles—Accumulated Depreciation

Assets

RENTAL VEHICLES—ACCUMULATED DEPRECIATION ASSET ACCOUNT
1660

ACCOUNT EXPLANATION
Accumulated depreciation on units in rental vehicle inventory.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly provision for depreciation on rental vehicle units SE
    Rental Vehicle Net Income 5200
      Accumulated Depreciation—Rental Vehicles 1660
             
  Rental vehicle removed from rental service, transferred to used car inventory at a gain (represented by the excess of wholesale value, less estimated reconditioning, over net book value) G
    Inventory—Used Cars (at wholesale value less estimated reconditioning) 1350
    Accumulated Depreciation—Rental Vehicles 1660
      Rental Vehicle Net Income 5200
      Rental Vehicles 1650
COMMENTS
  • Useful lives of vehicles vary according to the type of vehicle, use and other factors. Guidelines issued by federal tax authorities contain allowable methods and rates of depreciation. Tax counsel should be consulted before adopting depreciation methods and rates.
  • Account 5200, Rental Vehicle Net Income is a control account to which rental vehicle income and expenses are charged. Supporting subsidiary income and expense accounts are described in Vehicle Leasing and Rental.