October 30, 2016 admin

Depreciation—Equipment

Expenses

DEPRECIATION—EQUIPMENT EXPENSE ACCOUNT
8760/8765/8806

ACCOUNT EXPLANATION
Expense of depreciation of all equipment, furniture, signs, and company vehicles
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly depreciation of shop equipment SE
    Depreciation—Equipment 8760
    Depreciation—Equipment—Service—QL/FL/QCSC 8765
    Depreciation—Equipment—Parts—QL/FL/QCSC 8806
      Accumulated Depreciation—Parts, Service and Body Shop Equipment 1725
             
  Monthly depreciation of office equipment and signs SE
    Depreciation—Equipment 8760
    Depreciation—Equipment—Service—QL/FL/QCSC 8765
    Depreciation—Equipment—Parts—QL/FL/QCSC 8806
      Accumulated Depreciation—Office Equipment & Signs 1726
COMMENTS
  • Useful lives of equipment items vary according to the type of equipment, use, and other factors. Guidelines issued by federal authorities contain allowable methods and rates of depreciation. Tax counsel should be consulted before adopting depreciation methods and rates.
  • Depreciation of assets not used in the automobile business should be charged to Account 9450, Other Deductions.
  • For departmentalization purposes, depreciation of equipment used exclusively by specific operating departments should be charged to those departments. Depreciation of signs and office equipment should be distributed to Unapplied Expenses. See Departmentalization for additional information.