October 30, 2016 admin

Equipment—Company Vehicles—Accumulated Depreciation

Assets

EQUIPMENT—COMPANY VEHICLES—ACCUMULATED DEPRECIATION ASSET ACCOUNT
1727

ACCOUNT EXPLANATION
Accumulated depreciation of vehicles in Account 1722, Company Vehicles.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly provision for depreciation of company vehicles SE
    Depreciation—Equipment 8760
      Equipment—Company Vehicles—Accumulated Depreciation 1727
             
  Sale of tow truck for cash at a gain CR
    Cash in Bank—General 1001
    Equipment—Company Vehicles—Accumulated Depreciation 1727
      Company Vehicles 1722
      Gain or Loss—Sale of Fixed Assets & Securities 9250
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 recorded should support this account.