October 30, 2016 admin

Equipment & Vehicle Maintenance—Parts

Expenses

EQUIPMENT & VEHICLE MAINTENANCE—PARTS EXPENSE ACCOUNT
7680

ACCOUNT EXPLANATION
Expense of financing, repairing and maintaining vehicles (including demonstrators), machinery, and equipment used in the parts department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Reline brakes on parts panel truck I
   • Internal sales of labor and transfer of parts      
    Equipment & Vehicle Maintenance—Parts 7680
      Sales—Labor—Internal—Service (at internal rate) 5730
      Inventory—Parts (at cost) 1400
             
   • Cost of internal sale of labor
    Cost of Sales—Labor—Internal—Service 6730
      Inventory—Labor in Process 1440
             
  Repair of parts bins by outside vendor on open account P
    Equipment & Vehicle Maintenance—Parts 7680
      Accounts Payable—Trade 2100
           
  Monthly write-down of parts department demonstrator to estimated wholesale value SE  
    Equipment & Vehicle Maintenance—Parts   7680
      Inventory—Demonstrators     1340
COMMENTS
  • Repair and maintenance expenditures keep assets in efficient operating condition but do not appreciably lengthen their life or materially increase their value.
  • Amounts charged to parts department employees for the use of demonstrators should be credited to this account.
  • Repair and maintenance of office machines and equipment and signs should be charged to Account 8780, Equipment & Vehicle Maintenance—General.