077 Miscellaneous Expense

Expenses

Semi-Fixed

Synopsis

Account 077, Miscellaneous Expense is established to record expense that cannot properly be classified and applied to any other expense account.

Debits

Credits

Cost of operating expenses not otherwise provided for

Example 1

Record the $2,500 monthly accrual for the Christmas party, which is distributed to each department as shown in the example below.

Journal: Standard Entries Journal

Entry:		Debit	Credit
Account 077-01	Miscellaneous Expense – New Vehicles Department	$525
Account 077-02	Miscellaneous Expense – Used Vehicles Department	$375
Account 077-03	Miscellaneous Expense – Lease & Rental Department	$50
Account 077-05	Miscellaneous Expense – Mechanical Department	$575
Account 077-06	Miscellaneous Expense – Body Shop Department	$250
Account 077-07	Miscellaneous Expense – Parts & Accessories Department	$350
Account 077-09	Miscellaneous Expense – General & Administrative	$375
Account 331	Other Payables		$2,500

Distribution of Expenses

	Departmental Distribution
077 Miscellaneous Expense	New Veh.	Used Veh.	Lease & Rental	Mechanical	Body Shop	Parts & Access.	Gen & Admin.
	01	02	03	05	06	07	09
Departmental meetings	Department benefited	Department benefited	Department benefited	Department benefited	Department benefited	Department benefited	Department benefited
Dealership meeting							Total expense
Gifts not attributed to specific departments							Total expense
Auction registration fees		Total expense
Advertising for help	Department advertising	Department advertising	Department advertising	Department advertising	Department advertising	Department advertising	Department advertising
Vehicles damaged by Employee negligence	Employees responsible	Employees responsible	Employees responsible	Employees responsible	Employees responsible	Employees responsible	Employees responsible
Charges to the dealership under the Parts and Accessories Return Plan						Total expense

Comments

Very few items should be charged to this account. However, expenses such as the cost of temporary help, flowers for special occasions, gifts, and employee meals are properly recorded in this account.

Departmental Distribution