092 Equipment Rental
Expenses
Fixed
Synopsis
Account 092, Equipment Rental is established to record the cost of Renting Equipment for the dealership other than Telephone expenses, which are recorded in Account 074, Telephone. The monthly rent or monthly provision is posted to this account.
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Debits |
Credits |
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Example 1
Record the monthly rental of $3,872 for the telephone system. The $3,872 is distributed to each department as shown in the example below.
Journal: Cash Disbursements and Purchases
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Entry: |
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Debit |
Credit |
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Account 092-01 |
Equipment Rental – New Vehicles Department |
$813 |
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Account 092-02 |
Equipment Rental – Used Vehicles Department |
$581 |
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Account 092-03 |
Equipment Rental – Lease & Rental Department |
$77 |
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Account 092-05 |
Equipment Rental – Mechanical Department |
$736 |
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Account 092-06 |
Equipment Rental – Body Shop Department |
$387 |
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Account 092-07 |
Equipment Rental – Parts & Accessories Department |
$697 |
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Account 092-09 |
Equipment Rental – General & Administrative |
$581 |
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Account 300 |
Accounts Payable – Trade Creditors |
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$3,872 |
Distribution of Expenses
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Departmental Distribution |
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092 Equipment Rental |
New Veh. |
Used Veh. |
Lease & Rental |
Mechanical |
Body Shop |
Parts & Access. |
Gen & Admin. |
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01 |
02 |
03 |
05 |
06 |
07 |
09 |
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General office furniture and equipment |
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Total expense |
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Parts bins |
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Total expense |
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Postage meters |
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Total expense |
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Used car lot signs |
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Total expense |
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Furniture and equipment used in new vehicle department |
Total expense |
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Rental of vehicles for company use other than as lease and rental units |
Vehicles assigned |
Vehicles assigned |
Vehicles assigned |
Vehicles assigned |
Vehicles assigned |
Vehicles assigned |
Vehicles assigned |
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Dealership identification sign |
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Total expense |
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Charges by the lease and rental department for use of a daily rental unit furnished to a service customer at no charge |
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Department benefited |
Department benefited |
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Comments
When the need arises to Rent specialized Equipment the rental cost is charged to the Department that benefits from the usage of the equipment. If two (2) or more Departments share the equipment, then the rental cost should be pro-rated to each respective Department based on usage.