Accounting question - what to call thse accounts ?

Question

How would i do this journal entry - oh and its ADJUSTING entry

To provide maintenance for the vehicles, the company depositied $12,000 with a local garage. Charges were amde for $10,944 against the deposit

I put -

Maintenance Expense $10,944
Deposit $10,944

But i dont think thats right..

Help?

Thanks

Answer 1

The orginal entry should have been:
Deposits (dr) 12000
Cash (cr) 12000
Then with the charges:
Maintenance expenses (dr) 10944
Deposits (cr) 10944
Balance in Deposits account is 1056
I hope that helps from an old CPA

Answer 2

The $12,000 was a debit. The maintenance was $10,944. You have a credit adjustment of $1056 because this is the amount that was put back into the account. It has been a while since I have had to do accounting but I think this is right.

Answer 3

Deposit (debit) 12,000
------ Cash (credit) 12,000

Adjusting Entry when charges were made:
Maintenance Exp (debit) 10,944
-------Deposit (credit) 10,944

Answer 4

Debit MTC
Credit Deposits