October 30, 2016 admin

Equipment & Vehicle Maintenance—Body Shop

Expenses

EQUIPMENT & VEHICLE MAINTENANCE—BODY SHOP EXPENSE ACCOUNT
7880

ACCOUNT EXPLANATION
Expense of financing, repair and maintenance of machinery, equipment and vehicles (including demonstrators), used in the service department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Replacement of generator on tow truck I
   • Internal sales of parts and transfer of labor      
    Equipment & Vehicle Maintenance—Body Shop 7880
      Sales—Parts—Internal—Body shop (at internal rate) 5840
      Inventory—Labor in Process (at cost) 1440
             
   • Cost of internal sale of parts
    Cost of Sales—Parts—Internal 6840
      Inventory—Parts—Ford 1400
             
  Repair of frame straightener by outside vendor on open account P
    Equipment & Vehicle Maintenance—Body Shop 7880
      Accounts Payable—Trade 2100
           
  Monthly write-down of body shop demonstrator to estimated wholesale value SE  
    Equipment & Vehicle Maintenance—Body Shop   7880
      Inventory—Demonstrators     1340
COMMENTS
  • Repair and maintenance expenditures keep assets in efficient operating condition but do not appreciably lengthen their life or materially their value.
  • Amounts charged to body shop 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.