Equipment & Vehicle Maintenance—General – Ford Online Accounting Manual

Expenses

EQUIPMENT & VEHICLE MAINTENANCE—GENERAL	EXPENSE ACCOUNT
	8780

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Expenses of repairing and maintaining office equipment, office machines and signs; and expenses of repairing, maintaining, operating, and financing vehicles used for general and administrative purposes. Includes expense of demonstrators assigned to the dealer, general manager and office manager.

TRANSACTIONS

			Jrnl.	Dr.	Cr.

Repair of damaged fender on company vehicle in dealership body shop			I
• Record internal sale:
	Equipment & Vehicle Maintenance—General			8780
		Sales—Parts—Internal (at internal rate)			5470
		Sales—Labor—Internal (at internal rate)			5730

• Record cost of internal sale:
	Cost of Sales—Parts—Internal—Service			6470
	Cost of Sales—Labor—Internal—Service			6730
		Inventory—Parts—Ford			1400
		Inventory—Labor in Process			1440

Repair of typewriter in used car office by outside vendor			CD
	Equipment & Vehicle Maintenance—General			8780
		Cash in Bank—General			1001

COMMENTS

Repair and maintenance expenditures keep assets in efficient operating condition but do not appreciably lengthen their life or materially increase their value.
Repair and maintenance of machinery and equipment (except office machines and equipment) used by the parts department and the service department, and the body shop should be charged to Account 7680, Equipment & Vehicle Maintenance—Parts, Account 7780, Equipment & Vehicle Maintenance—Service, and Account 7880, Equipment & Vehicle Maintenance—Body Shop, respectively.
For departmentalization purposes, expense of repairing and maintaining equipment assigned to specific departments should be charged to those departments. Expenses related to equipment and vehicles used for general and administrative purposes should be distributed to Unapplied Expenses. See Departmentalization for further information.