What is the accounting entry for installer installation costs?

Before the equipment is delivered for use, it is usually necessary to hire an installer to install it, and the installation fee should be paid to him. For the installation workers to provide installation services charged installation fee should be how to do accounting entries?

Installation Fee Entries for Installers

1. Accounting Entries for Installation Fees for External Installers

Borrow: Labor Costs

Loan: Bank Deposits

Borrow: Cost of Main Businesses

Loan: Labor Costs

2. Accounting Entries for Installation Fees for Internal Installers

When accruing:<

Borrow: labor costs

Loan: employee compensation payable

Carry forward:

Borrow: cost of main business

Loan: labor costs

Payment:

Borrow: compensation payable

Loan: bank deposits

Components of the payable employee compensation accounting include employee wages, bonuses, allowances and subsidies; employee benefits; medical insurance premiums, pension insurance premiums, unemployment insurance premiums, industrial injury insurance premiums and maternity insurance premiums and other social insurance premiums; housing provident fund; labor union funds and employee education funds; non-monetary benefits; compensation for the termination of the labor relationship with the employee and so on.

What is labor cost?

Labor cost belongs to the cost category.

Labor cost refers to the costs incurred by the enterprise to provide labor services. Enterprises should set up the "labor cost" account. This account for the production costs incurred by the enterprise production, including the production of various products (finished products, self-made semi-finished products, etc.), self-made materials, self-made tools, self-made equipment. Enterprises (real estate development) can change this account to "development costs" account.