October 30, 2016 admin

Rent & Lease Expense

Expenses

RENT & LEASE EXPENSE EXPENSE ACCOUNT
8300/8305/8306

ACCOUNT EXPLANATION
Expenses of renting and leasing property used in the automobile business.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly rent of dealership facility CD
    Rent & Lease Expense 8300
    Rent & Lease Expense—Service—QL/FL/QCSC 8305
    Rent & Lease Expense—Parts—QL/FL/QCSC 8306
      Cash in Bank—General 1001
             
  Monthly write-off of prepaid rent expense SE
    Rent & Lease Expense 8300
    Rent & Lease Expense—Service—QL/FL/QCSC 8305
    Rent & Lease Expense—Parts—QL/FL/QCSC 8306
      Prepaid Rent 1530
COMMENTS
  • If a portion of rented or leased dealership land or building is sublet, the rent received should be credited to this account.
  • Rent expense of property not used in the automobile business should be recorded in Account 9450, Other Deductions.
  • For departmentalization purposes, rent and lease costs applicable to specific operating departments should be charged to those departments. Costs applicable to an integrated dealership facility should be distributed to departments as provided in Departmentalization.