084 Taxes – Real Estate
Expenses
Fixed
Synopsis
Account 084, Taxes – Real Estate is established to record the monthly provision for Taxes due on Real Estate owned by the dealership and used for the auto business only.
Debits |
Credits |
|
|
Example 1
Record the monthly expense of $3,813 for the real estate taxes paid in advance. The $3,813 is distributed to each department as shown in the example below.
Journal: Standard Entries Journal
Entry: |
|
Debit |
Credit |
Account 084-01 |
Taxes – Real Estate – New Vehicle Department |
$1,335 |
|
Account 084-02 |
Taxes – Real Estate – Used Vehicle Department |
$763 |
|
Account 084-03 |
Taxes – Real Estate – Lease & Rental Department |
$75 |
|
Account 084-05 |
Taxes – Real Estate – Mechanical Department |
$763 |
|
Account 084-06 |
Taxes – Real Estate – Body Shop Department |
$267 |
|
Account 084-07 |
Taxes – Real Estate – Parts & Accessories Department |
$419 |
|
Account 084-09 |
Taxes – Real Estate – General & Administrative |
$191 |
|
Account 270 |
Prepaid Taxes |
|
$3,813 |
Distribution of Expenses
|
Departmental Distribution |
||||||
084 Taxes – Real Estate |
New Veh. |
Used Veh. |
Lease & Rental |
Mechanical |
Body Shop |
Parts & Access. |
Gen & Admin. |
|
01 |
02 |
03 |
05 |
06 |
07 |
09 |
Taxes applicable to all or several departments |
Relative value factor |
Relative value factor |
Relative value factor |
Relative value factor |
Relative value factor |
Relative value factor |
Relative value factor |
Taxes on a separate body shop |
|
|
|
|
Total expense |
|
|
Taxes on a separate new car storage shop |
Total expense |
|
|
|
|
|
|
Comments
The monthly provision for Real Estate Taxes should be pro-rated to each Department using the relative value factor method. The exception is when a Department occupies a completely separate facility such as an off-site service department. For these exceptions, the entire monthly provision is charged to the benefiting Department.