October 30, 2016 admin

Interest—Excluding Vehicle & Mortgage

Expenses

INTEREST—EXCLUDING VEHICLE & MORTGAGE EXPENSE ACCOUNT
8740

ACCOUNT EXPLANATION
Interest expense, other than interest on floor planned vehicles and mortgages.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly accrual of interest on ninety-day bank loan SE
    Interest—Excluding Vehicle & Mortgage 8740
      Accrued Interest 2421
             
  Monthly billing on parts account of amount due on sign purchased on five-year conditional sales plan under Ford Motor Company program P
    Notes Payable—Other—Long Term 2520
    Interest—Excluding Vehicle 8740
      Accounts Payable—Trade 2100
             
  Monthly billing on parts account of amount due on Rotunda service equipment purchased on twelve-month deferred monthly payment plan under Ford Motor Company program P
    Notes Payable—Other—Short Term 2030
    Interest—Excluding Vehicle & Mortgage   8740
      Prepaid Interest     1520
      Accounts Payable—Trade     2100
COMMENTS
  • Interest paid in advance that applies to future periods should be charged to Account 1520, Prepaid Interest.
  • Includes amortization of prepaid service charges on purchases of Rotunda equipment.
  • For departmentalization purposes, interest applicable to specific operating departments should be charged to those departments. Interest applicable to the dealership as a whole should be distributed to Unapplied Expenses. See Departmentalization for further information.