Ask Experts Questions for FREE Help !
Ask
    25yrs's Avatar
    25yrs Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jul 17, 2008, 03:51 PM
    Accounting shortcut for repossesed vehicle
    Truck was bought in 5-06. Repossessed in 6-07. Has anyone ever heard of converting payments to rental expense instead of depreciation etc? Am working on 06 books, then 07 to close down in oct. 07. Same question regarding estate that has been foreclosed on. Can payments on houses be converted?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Jul 20, 2008, 12:12 AM
    Payments on a truck shouldn't have been going to depreciation anyway. They should have been split between coming off the note and what was going towards interest expense. The depreciation is an entirely different issue, separate from payments.

    Having gotten repossessed doesn't turn it into a rental. You have to reverse out all associated accounts (truck, accumulated depreciation and the note), and the difference of all that is some type of loss. Well, presumably a loss since the book value probably was lower that the payments made.
    25yrs's Avatar
    25yrs Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jul 20, 2008, 04:17 PM
    Thank you morgaine300 for your quick response. My poorly phrased question was more in the category of "have you ever heard of this" rather than a how to. My client assures me this is done somewhere in "accounting lala land". Just out of respect for him I sent it on as I have never heard of this. I agree with you. I should have said "car payments" converted to rental payments. I agree no contract no conversion. Meanwhile I can say I have researched this and gotten an answer.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accounting for a purchase of vehicle [ 4 Answers ]

Hi, If I'm purchasing vehicles for business, do I include the tax/title charges and the paint jobs for the business logos into the same entry as cost of vehicle? Example: Truck 50 Tax/title 10 Alterations for business purpose 20 What would be the entries?

Accounting for a vehicle cash purchase [ 2 Answers ]

I purchased a vehicle for 3,200.00; add. 55.00 Doc Fee 50.00 smog pd to seller 239.61 sales tax = 3,544.61. To that add 30.00 Reg/Trans Fee and 8.25 for smog fee pd to State=3,582.86 Less 500.00 Discount I Paid a total of 3,082.86 cash. Which amounts are capitalized? Thanks, Ana

Shortcut [ 2 Answers ]

I want to know when I inserted the disk the window shows The yellow triangle sign with problem shortcut and said The drive or network connection that the shortcut 'CD Drive.lnk' refers to is unavailable.Make sure that the disk is properly inserted or the network resource is available, and then...

Keyboard shortcut [ 2 Answers ]

Hi! Just wanted to know what is the keyboard shortcut for maximizing a window, any window, a browser or something?

View more questions Search