October 30, 2016 admin

Equipment—Parts, Service & Body Shop—Accumulated Depreciation

Assets

EQUIPMENT—PARTS, SERVICE & BODY SHOP—ACCUMULATED DEPRECIATION ASSET ACCOUNT
1725

ACCOUNT EXPLANATION
Accumulated depreciation of parts, service and body shop equipment.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly provision for depreciation of parts and service equipment SE
    Depreciation—Equipment 8760
      Equipment—Parts, Service & Body Shop—Accumulated Depreciation 1725
             
  Salesof parts bins for cash at a loss CR
    Cash in Bank—General 1001
    Equipment—Parts, Service & Body Shop—Accumulated Depreciation 1725
    Gain or Loss—Sale of Fixed Assets & Securities 9250
      Parts, Service & Body Shop Equipment 1720
COMMENTS
  • Useful lives of equipment items vary according to the type of equipment, 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.
  • Detailed fixed asset depreciation records should support this account.