087 Utilities

Expenses

Fixed

Synopsis

Account 087, Utilities is established to record the monthly amount paid or payable for water, electricity, and heating fuel consumed by the dealership other than Telephone expense, which is recorded in Account 074, Telephone.

Debits

Credits

Cost of fuel, electricity, water, etc.

Example 1

Record the monthly invoice of $4,781 for the electricity. The $4,781 is distributed to each department as shown in the example below.

Journal: Cash Disbursements and Purchase

Entry:		Debit	Credit
Account 087-01	Utilities – New Vehicles Department	$1,004
Account 087-02	Utilities – Used Vehicles Department	$717
Account 087-03	Utilities – Lease & Rental Department	$239
Account 087-05	Utilities – Mechanical Department	$909
Account 087-06	Utilities – Body Shop Department	$717
Account 087-07	Utilities – Parts & Accessories Department	$765
Account 087-09	Utilities – General & Administrative	$430
Account 300	Accounts Payable – Trade Creditors		$4,781

Distribution of Expenses

	Departmental Distribution
087 Utilities	New Veh.	Used Veh.	Lease & Rental	Mechanical	Body Shop	Parts & Access.	Gen & Admin.
	01	02	03	05	06	07	09
Utility charges for separate new truck showroom	Total expense
Electricity for separate used car lot		Total expense
Electricity or heating fuel applicable to several or all departments	Area or usage	Area or usage	Area or usage	Area or usage	Area or usage	Area or usage	Area or usage
Water applicable to several or all departments	Usage	Usage	Usage	Usage	Usage	Usage	Usage

Comments

Unless a Department operates from a separate, off-site facility, the Utilities expense should be pro-rated to each Department based on usage as indicated in the Expense Distribution table above.

Departmental Distribution