Continuing Expenditures for plant assets: Costs that are expensed

090314_1457_GroupingEle1.jpgThe cost of routine maintenance and minor repairs that are incurred to keep an asset in good working order are expensed as incurred.  The account to record repairs is called repairs expense. For example, Uncle Joe spent $800 to fix his equipment. The journal entry to recognize this expense is as follows:

Debit repairs expense

Credit cash expense

Leave A Reply