Liabilities and Net Worth ACCRUED INSURANCE LIABILITY ACCOUNT 2420 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Estimated premiums on insurance for which actual premiums will be determined in the future based on actual payrolls, inventories, etc. TRANSACTIONS Jrnl. Dr. Cr. Monthly accrual of Worker’s Compensation Insurance based on payroll SE Employee Benefits Read more about Accrued Insurance[…]
Liabilities and Net Worth ACCRUED HOLIDAY PAY LIABILITY ACCOUNT 2415 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Time off in lieu of working on designated holidays. TRANSACTIONS Jrnl. Dr. Cr. Monthly accrual entry of estimated annual holiday expense SE Vacation & Time-Off Pay—Technicians Applicable Salary Expense Accounts (other than technicians) 7790 etc. Read more about Accrued Holiday Pay[…]
Liabilities and Net Worth ACCRUED VACATION PAY LIABILITY ACCOUNT 2412 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Estimated gross amount of vacation pay earned by non-salaried employees, such as technicians and vehicle salespeople. TRANSACTIONS Jrnl. Dr. Cr. Monthly accrual of estimated vacation pay SE Salaries—Salespeople—New 7070 Salaries—Salespeople—Used 7270 Read more about Accrued Vacation Pay[…]
Liabilities and Net Worth ACCRUED BONUSES/INDEMNITIES LIABILITY ACCOUNT 2411 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Bonuses earned by dealers and employees based on total dealership profit and payable in subsequent periods. TRANSACTIONS Jrnl. Dr. Cr. Monthly accrual of gross amount of bonuses SE Dealer Bonus 9500 Employee Bonuses 9550 Read more about Accrued Bonuses/Indemnities[…]
Liabilities and Net Worth ACCRUED PAYROLL LIABILITY ACCOUNT 2410 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Salaries, wages, commissions, and incentives earned but not payable until a subsequent period. TRANSACTIONS Jrnl. Dr. Cr. Employees’ earnings for the current period, including salaries, wages, commissions and incentives for which payroll checks will be issued currently: PR Read more about Accrued Payroll[…]
Liabilities and Net Worth ACCRUED TAXES—FRANCHISE & OTHER LIABILITY ACCOUNT 2402 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Franchise taxes and any other taxes assessed on the dealership, such as gross receipts tax, intangibles tax, etc., not provided for elsewhere in this Manual. TRANSACTIONS Jrnl. Dr. Cr. Monthly accrual of franchise tax SE Read more about Accrued Taxes—Franchise & Other[…]
Liabilities and Net Worth ACCRUED TAXES—REAL & PERSONAL PROPERTY LIABILITY ACCOUNT 2401 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Taxes accrued on real and personal property of the dealership. TRANSACTIONS Jrnl. Dr. Cr. Monthly accrual of real estate taxes SE Taxes—Real Estate 8400 Accrued Taxes—Real & Personal Property 2401 Read more about Accrued Taxes—Real & Personal Property[…]
Liabilities and Net Worth ACCRUED TAXES—UNEMPLOYMENT LIABILITY ACCOUNT 2400 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Unemployment taxes accrued on salaries and wages paid to employees. TRANSACTIONS Jrnl. Dr. Cr. Monthly accrual for federal unemployment tax SE Payroll Taxes 8100 Accrued Taxes—Unemployment 2400 Read more about Accrued Taxes—Unemployment[…]
Liabilities and Net Worth CUSTOMER REFUNDS—REPOSSESSIONS LIABILITY ACCOUNT 2320 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Refund due the original customer on the resale of a repossessed vehicle that had been returned to Ford or Lincoln-Mercury dealerships which sold them as new or used vehicles. TRANSACTIONS Jrnl. Dr. Cr. Record resale surplus from repossessed Read more about Customer Refunds—Repossessions[…]
Liabilities and Net Worth CUSTOMER SERVICE CONTRACTS LIABILITY ACCOUNT 2315 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Amount owed to customers on unredeemed portion of service coupon books and customer guarantee contracts. Extended Service Plan offered by the company. TRANSACTIONS Jrnl. Dr. Cr. Sale of lubrication coupon book to customer CR Cash Read more about Customer Service Contracts[…]