Fix code in the Profit Maintenance Agreement

Aug 6th, 2022
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How to fix code in the Profit Maintenance Agreement

4.9 out of 5
36 votes

i think thats a great question and i believe if its done correctly it can absolutely benefit the homeowner as well as the long run benefit the hvac company were talking about really checking stuff not just like yeah its working good were really checking everything were checking the condition of the condenser fins were checking for any oil leaks in that condensing unit were washing the condensing coil out were pulling the leaves out of that condensing unit were checking to see if all the wire is going to be rubbing into the copper tubing it could cause a leak later were looking for any wiring that can be chafed and shorting out later were making sure were cleaning that fan blade were checking the fan blade for any hairline cracks were checking the motor were checking the bearings of the motor were checking everything we can about that unit were checking the wiring from the condensing unit to the wall making sure its the right size is it exposed to the sun is it going

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Repairs and maintenance are expenses for normal maintenance and upkeep of capital assets that are necessary to keep the assets in their usual condition. These expenses are recurring in nature and do not extend the useful life of the asset.
Repairs and Maintenance Expense refers to the costs incurred by a business to ensure that its assets continue to operate in their intended manner over their useful life.
Answer and Explanation: Therefore, repairs and maintenance may be considered as an expense to be presented in the income statement or capitalized to be added to the asset account presented in the balance sheet.
Recognition: Repair and maintenance costs should be recognized as expenses in the income statement when they are incurred. This is in ance with the accrual basis of accounting and the matching principle, which requires that expenses be recognized in the same period as the revenues they help generate.
To record a repair or maintenance expense in your records, debit the repairs and maintenance expense account by the amount of the expense in a journal entry. A debit increases an expense account. Credit either the cash or accounts payable account by the same amount depending on how you will pay for the expense.
Therefore, maintenance expenses are expensed in the profit and loss (PL) statement for the year, impacting the profit reported. On the other hand, capital expenditures are capitalized in the balance sheet as an asset, and wear and tear are recognized as depreciation in the profit and loss account.

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