712 Amortization (Closed End Lease)

722 Amortization (Open End Lease)

732 Amortization (Rental)

Lease & Rental Activity

Direct Cost

Cost of Sales Synopsis

Accounts 712, 722, and 732, Amortization for Closed End Leases, Open End Leases and Rental Vehicles are established to record the amortization applied to Lease and Rental Vehicles owned by the dealership.

Example 1

Record the $24,000 internal sale or transfer of a lease unit to used car inventory at the appraised wholesale value. Accumulated depreciation is $8,800 and the amortization cost is $400. The inventory value of the Lease & Rental unit transferred to the used car inventory is $14,800.

Journal: General Journal