mba会计教材chap09~1

?TheMcGraw-HillCompanies,Inc.,1999Slide9-1Irwin/McGraw-HillChapter9PlantAssetsandDepreciation?TheMcGraw-HillCompanies,Inc.,1999Slide9-2Irwin/McGraw-HillPlantAssetsLong-livedassetsacquiredforuseinbusinessoperations.Similartolong-termprepaidexpensesThecostofplantassetsistheadvancepurchaseofservices.DateDescriptionDebitCreditAsyearspass,andtheservicesareused,thecostistransferredtodepreciationexpense.?TheMcGraw-HillCompanies,Inc.,1999Slide9-3Irwin/McGraw-HillLand,buildings,equipment,furniture,fixtures.Long-termassetshavingphysicalsubstance.TangiblePlantAssetsPatents,copyrights,trademarks,franchises,goodwill.Noncurrentassetswithnophysicalsubstance.IntangibleAssetsOilreserves,timber,otherminerals.Sitesacquiredforextractingvaluableresources.NaturalResourcesMajorCategoriesofPlantAssets?TheMcGraw-HillCompanies,Inc.,1999Slide9-4Irwin/McGraw-HillAccountableEventsAcquisition.Allocationoftheacquisitioncosttoexpenseovertheasset抯usefullife(depreciation).Saleordisposal.?TheMcGraw-HillCompanies,Inc.,1999Slide9-5Irwin/McGraw-HillAcquisitionofPlantAssetsAssetpriceReasonableandnecessarycosts......forgettingtheassettothedesiredlocation....forgettingtheassetreadyforuse.Cost?TheMcGraw-HillCompanies,Inc.,1999Slide9-6Irwin/McGraw-HillDeterminingCostExampleOnMay4,HeatCo.,anOhiomakerofstoves,buysanewmachinefromaTexascompany.Thenewmachinehasapriceof$52,000.Salestaxwascomputedat8%.HeatCo.pays$500shippingcosttogetthemachinetoOhio.Afterthemachinearrives,set-upcostsof$1,300areincurred,alongwith$4,000intestingcosts.ComputethecostofHeatCo.’snewmachine.?TheMcGraw-HillCompanies,Inc.,1999Slide9-7Irwin/McGraw-HillDeterminingCostExampleListprice52,000$Salestax@8%4,160Transportationcost500Set-up1,300Testing4,000TotalcosttoHeatCo.61,960$DateDescriptionDebitCreditPreparethejournalentry.?TheMcGraw-HillCompanies,Inc.,1999Slide9-8Irwin/McGraw-HillDeterminingCostExampleListprice52,000$Salestax@8%4,160Transportationcost500Set-up1,300Testing4,000TotalcosttoHeatCo.61,960$DateDescriptionDebitCredit4-MayNewMachine61,960Cash61,960?TheMcGraw-HillCompanies,Inc.,1999Slide9-9Irwin/McGraw-HillSpecialConsiderationsImprovementstolandsuchasdriveways,fences,andlandscapingarerecordedseparately.LandImprovementsCostincludesrealestatecommissions,escrowfees,legalfees,clearingandgradingtheproperty.Land?TheMcGraw-HillCompanies,Inc.,1999Slide9-10Irwin/McGraw-HillSpecialConsiderationsRepairsmadepriortothebuildingbeingputinuseareconsideredpartofthebuilding抯cost.Buildings?TheMcGraw-HillCompanies,Inc.,1999Slide9-11Irwin/McGraw-HillSpecialConsiderationsEquipmentRelatedinterest,insurance,andpropertytaxesaretreatedasexpensesofthecurrentperiod.?TheMcGraw-HillCompanies,Inc.,1999Slide9-12Irwin/McGraw-HillSpecialConsiderationsIthinkI抣lbuythewholething;barn,land,andanimals.AllocationofaLump-SumPurchase?TheMcGraw-HillCompanies,Inc.,1999Slide9-13Irwin/McGraw-HillSpecialConsiderationsThetotalcostmustbeallocatedtoseparateaccountsforeachasset.TheallocationisbasedontherelativeFairMarketValueofeachassetpurchased.AllocationofaLump-SumPurchase?TheMcGraw-HillCompanies,Inc.,1999Slide9-14Irwin/McGraw-HillCapitalExpendituresandRevenueExpendituresTocapitalizeanexpendituremeanstochargeittoanassetaccount.Anymaterialexpenditurethatwillbenefitseveralaccountingperiods.CapitalExpenditureToexpenseanexpendituremeanstochargeittoanexpenseaccount.Expendituresforordinaryrepairsandmaintenance.RevenueExpenditure?TheMcGraw-HillCompanies,Inc.,1999Slide9-15Irwin/McGraw-HillDepreciationTheallocationofthecostofaplantassettoexpenseintheperiodsinwhichservicesarereceivedfromtheasset.CostofplantassetsBalanceSheetAssets:PlantandequipmentIncomeStatementRevenues:Expenses:Depreciationastheservicesarereceived?TheMcGraw-HillCompanies,Inc.,1999Slide9-16Irwin/McGraw-HillBookValueCost-AccumulatedDepreciationAccumulatedDepreciationContra-assetRepresentstheportionofanasset抯costthathasalreadybeenallocatedtoexpense.CausesofDepreciationPhysicaldeteriorationObsolescenceDepreciation?TheMcGraw-HillCompanies,Inc.,1999Slide9-17Irwin/McGraw-HillCost-ResidualValueLifeinYearsDepreciationExpenseperYear=Straight-LineDepreciation?TheMcGraw-HillCompanies,Inc.,1999Slide9-18Irwin/McGraw-HillStraight-LineMethodExampleOnJanuary1,1998,BassCo.buysanewboat.BassCo.pays$24,000fortheboat.Theboathasanestimatedresidualvalueof$3,000andanestimatedusefullifeof5years.Computedepreciationfor1998usingthestraight-linemethod.?TheMcGraw-HillCompanies,Inc.,1999Slide9-19Irwin/McGraw-HillStraight-LineMethodExampleCost?ResidualValue24,000$?3,000$=4,200$peryearYearsofUsefulLife=5OnJanuary1,1998,BassCo.buysanewboat.BassCo.pays$24,000fortheboat.Theboathasanestimatedresidualvalueof$3,000andanestimatedusefullifeof5years.Computedepreciationfor1998usingthestraight-linemethod.?TheMcGraw-HillCompanies,Inc.,1999Slide9-20Irwin/McGraw-HillStraight-LineMethodExampleBassCo.willrecord$4,200depreciationeachyearforfiveyears.Totaldepreciationovertheestimatedusefullifeoftheboatis:DepreciationAccumulatedAccumulatedUndepreciatedExpenseDepreciationDepreciationBalanceYear(debit)(credit