713 Insurance (Closed End Lease - In Service Vehicles)
723 Insurance (Open End Lease - In Service Vehicles)
733 Insurance (Rental - In Service Vehicles)
Lease & Rental Activity
Direct Cost
Cost of Sales Synopsis
Accounts 713, 723, and 733, Insurance for Closed End Lease, Open End Lease and Rental vehicles, respectively are established to record the cost of insurance premiums paid or payable for coverage of Lease and Rental Vehicles.
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Debits |
Credits |
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Example 1
Record the $5,365 payment of the insurance premiums on the rental vehicles.
Journal: Cash Disbursements
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Entry: |
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Debit |
Credit |
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Account 733 |
Direct Cost - Insurance – Rental – In Service Vehicles |
$5,365 |
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Account 202 |
Cash in Bank |
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$5,365 |