Sometimes long term, some times short term - per job basis. How do the dr. and cr.? I can see it being both a COGS and an expense account. What is the proper method and how would my journal entries work?
If the equipment is used directly in the construction side of the project, e.g. excavators, then the equipment is a direct cost and I would include it under COGS. If the equipment is like an overhead projector you use when you make a sales pitch before you got the contract, that would be a selling expense. Dr Equipment rental expense xxx Cr Cash or accounts payable xxx
