tailieunhanh - Lecture Fundamental accounting principles (21e) - Chapter 10: Plant assets, natural resources, and intangibles

After completing this chapter you should be able to: Describe merchandising activities and identify income components for a merchandising company, identify and explain the inventory asset and cost flows of a merchandising company, compute the acid-test ratio and explain its use to assess liquidity,. | Plant Assets, Natural Resources, and Intangibles Chapter 10 Chapter 10: Plant Assets, Natural Resources, and Intangibles Plant Assets Tangible in Nature C 1 Plant assets are tangible assets that are actively used in the operations of the entity. We fully expect these assets, sometimes referred to as property, plant, and equipment, to benefit more than one accounting period. PLANT ASSETS C 1 The four main issues in accounting for plant assets are shown on this screen: (1) computing the costs of plant assets, (2) allocating the costs of most plant assets (less any salvage amounts) against revenues for the periods they benefit, (3) accounting for expenditures such as repairs and improvements to plant assets, and (4) recording the disposal of plant assets. Acquisition Cost Acquisition cost excludes financing charges and cash discounts All expenditures needed to prepare the asset for its intended use Purchase price Cost Determination C 1 The cost of a plant asset includes the purchase price as well as all costs necessary to get the asset in place and ready for its intended use. We record the purchase price net of any cash discounts available. We will add freight, unpacking, assembling, installing, and testing costs to the net invoice price to arrive at the final cost. Finance charges are not included in the cost of an asset. If we elect to finance the purchase over a period of time, the interest cost is charged as an expense when incurred. Land is not depreciable. Purchase price Real estate commissions Title insurance premiums Delinquent taxes Surveying fees Title search and transfer fees Land C 1 Land is not a depreciable plant asset. In addition to the purchase price, there are many costs generally incurred in connection with the acquisition. Many of these costs are related to obtaining legal title to the land. Land Improvements Parking lots, driveways, fences, walks, shrubs, and lighting systems. Depreciate over useful life of improvements. C 1 Land improvements are | Plant Assets, Natural Resources, and Intangibles Chapter 10 Chapter 10: Plant Assets, Natural Resources, and Intangibles Plant Assets Tangible in Nature C 1 Plant assets are tangible assets that are actively used in the operations of the entity. We fully expect these assets, sometimes referred to as property, plant, and equipment, to benefit more than one accounting period. PLANT ASSETS C 1 The four main issues in accounting for plant assets are shown on this screen: (1) computing the costs of plant assets, (2) allocating the costs of most plant assets (less any salvage amounts) against revenues for the periods they benefit, (3) accounting for expenditures such as repairs and improvements to plant assets, and (4) recording the disposal of plant assets. Acquisition Cost Acquisition cost excludes financing charges and cash discounts All expenditures needed to prepare the asset for its intended use Purchase price Cost Determination C 1 The cost of a plant asset includes the purchase .

• Kế toán - Kiểm toán
• Merchandising operations
• Accounting information
• Financial accounting
• Managerial accounting
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Accounting information systems
• Fundamental system principles
• Technology based accounting systems
• Managerial cost
• Reporting manufacturing activities
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting for partnerships
• Partnership form of organization
• Basic partnership accounting