October 30, 2016 admin

Interest—Mortgage

Expenses

INTEREST—MORTGAGE EXPENSE ACCOUNT
8320

ACCOUNT EXPLANATION
Interest expense on mortgages on property used in the automobile business.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly accrual of interest on mortgage SE
    Interest—Mortgage 8320
      Accrued Interest 2421
COMMENTS
  • Interest expense on mortgages on property not used in the automobile business should be recorded in Account 9450, Other Deductions.
  • For departmentalization purposes, mortgage interest on property used by a specific operating department should be charged to that department. Mortgage interest on integrated dealership property should be distributed to departments as provided in Departmentalization.