Equipment & Vehicle Maintenance—Service – Ford Online Accounting Manual

Expenses

EQUIPMENT & VEHICLE MAINTENANCE—SERVICE	EXPENSE ACCOUNT
	7780/7980

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Expense of financing, repair and maintenance of machinery, equipment and vehicles (including demonstrators), used in the service department. (Does not include service loaners; see Account 7760.)

TRANSACTIONS

			Jrnl.	Dr.	Cr.

Replacement of generator on tow truck			I
• Internal sales of parts and transfer of labor
	Equipment & Vehicle Maintenance—Service			7780
	Equipment & Vehicle Maintenance—Service—Quick Lane			7980
		Sales—Parts—Internal—Service (at internal rate)			5470
		Inventory—Labor in Process (at cost)			1440

• Cost of internal sale of parts
	Cost of Sales—Parts—Internal Service			6470
		Inventory—Parts—Ford			1400
		Inventory—Parts—Quick Lane			1405

Repair of oscilloscope by outside vendor on open account			P
	Equipment & Vehicle Maintenance—Service			7780
	Equipment & Vehicle Maintenance—Service—Quick Lane			7980
		Accounts Payable—Trade			2100

Monthly write-down of service department demonstrator to estimated wholesale value			SE
	Equipment & Vehicle Maintenance—Service			7780
	Equipment & Vehicle Maintenance—Service—Quick Lane			7980
		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 service 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.
See also Account 7880, Equipment & Vehicle Maintenance—Body Shop.