Repair & Maintenance Expense Journal Entry ExampleĪBC is a consulting company that provides accounting services to other entities. If the company pays cash immediately, it will be deducted from the balance sheet. Accounts payable is the company obligation to pay the supplier in the next period. Repair and maintenance expenses will be present on income statement and reduce the company profit. This transaction will impact both income statement and balance sheet. Account Debit Credit Repair and Maintenance Expense 000 Accounts Payable/Cash 000 The journal entry should be debiting repair and maintenance expenses and credit accounts payable or cash. Repair and maintenance expense is recorded as the operating expense base on accrued basic. Repair Broken pipe of the building Accounting for Repair & Maintenance Expense.Car regular maintenance such as oil and some accessory.Example of Repair and Maintenance Expenses Without them, the assets such as machinery will not work properly in the current condition. Repair and maintenance expenses are necessary for the assets and they incur on a regular basis. Some assets require regular maintenance to keep operating at the optimal level. The company needs to spend on repair and maintenance expenses to keep the assets operating in optimal condition. It is the expense which not bring any improvement to the assets, but only to keep the assets at the current state over long term. Normal repair and maintenance expense that incurs regularly is classified as the operating expense. Repair and Maintenance can be classified as the company operating expense or capitalize as the assets and depreciate over time. In accounting, both types of repairs are treated separately based on their nature. Some other assets may require regular maintenance in order to operate properly. At some points, they will brokedown and require repair. Those assets will not work in the best condition forever. In business, repair and maintenance are very common as long as the entity owns the fixed assets. The company spends this cost to restore assets to the previous condition or keep the present condition over a longer period of time. Repair and Maintenance is the amount that a company spends to restore the condition of the fixed assets.
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