October 30, 2016 admin

Contributions

Expenses

CONTRIBUTIONS EXPENSE ACCOUNT
8720/8725/8766

ACCOUNT EXPLANATION
Expense of contributions to charitable, educational, religious, and similar organizations.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Contributions to community Fund CD
    Contributions 8720
    Contributions—Service—QL/FL/QCSC 8725
    Contributions—Parts—QL/FL/QCSC 8766
      Cash in Bank—General 1001
COMMENTS
  • Tax counsel should be obtained regarding accrued contributions remaining unpaid at year end.
  • For departmentalization purposes, contributions that are applicable to specific operating departments should be charged to those departments. Contributions applicable to the dealership as a whole should be distributed to Unapplied Expenses. See Departmentalization for further information.