Accumulated depreciation: building $ 16‚000 Fixtures and equipment 12‚000 Accumulated depreciation: fixtures and equipment 3‚000 Notes payable 190‚000 Accounts payable 3‚200 Unearned admissions revenue (YMCA) 1‚200 Income taxes payable 6‚100 Capital Stock 50‚000 Retained earnings 29‚440 Dividends 11‚000 Admissions revenue 290‚200 Concessions revenue 17‚460 Salaries expense 62‚900 Film rental expense 87
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CHAPTER 11 QUESTIONS 1. Distinguish among depreciation‚ depletion‚ and amortization expenses. Depreciation refers to the cost allocation of tangible long-term assets; depletion refers to the cost allocation of natural resources; and amortization refers to the cost allocation of intangible assets. All three terms have similar underlying principles governing their use. 2. What factors must be considered in determining the periodic deprecation charges that should be made for a company’s depreciable
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Depreciation Accounting 1 Types of Long-Lived Assets y Tangible asset y Asset with physical substance y Property‚ plant‚ and equipment = fixed asset. y Intangible asset y Intellectual property. y No physical substance y Examples are patent rights‚ copyrights 2 Amortization y y View capital asset as bundle of services Similar to prepaid expenses‚ cost is expensed as company benefits from the services y y y y Land - no depreciation Plant and equipment - depreciation Natural
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Co 5 12/8/2011 Cash $8‚000 Unearned Rental Fees Received Prepaid rent from McNamer Construction Co. 6 12/12/2011 Salaries Expense $5‚200 Cash Salaries first 2 weeks of December 7 12/15/2011 Cash $12‚000 Account Receivable $6‚000 Rental Fees Earned Revenue earned 8 12/17/2011 Maintenance Expense $600 Accounts Payable Repair parts for rental tractor. Due in 30 days to Earth Movers 9 12/23/2011 Cash $2‚000 Account Receivable
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and weakness of each‚ how entries are made for each‚ how and if each method handles depreciation‚ how inventory is accounted for and if there any differences between organizations that use a certain method. Accrual accounting is mostly used by organizations that are for profit. Accounts using this method are prepared with financial transactions accrued. Organizations using this method report revenues and expenses in the accounting period their economic substance is realized‚ not the period they are
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BankChapter 13 - Property‚ Plant‚ and Equipment: Depreciation and Depletion Chapter 13 Property‚ Plant‚ and Equipment: Depreciation and Depletion True / False Questions 1. The auditors’ approach to the audit of property‚ plant‚ and equipment largely results from the fact that relatively few transactions occur. True False 2. A major control procedure related to plant and equipment is a budget for depreciation. True False 3. Evidence of continued ownership of property is obtained by vouching
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Accounts Payable 1‚500 Cash 1‚500 July 20 Salaries Expense 2‚000 Cash 2‚000 July 21 Cash 1‚600 Accounts Receivable 1‚600 July 25 Accounts Receivable 2‚500 Service Revenue 2‚500 July 31 Maintenance 290 Cash 290 (Maintenance Paid) July 31 Dividends 600 Cash 600 (Declared and paid a dividend) (D) Journalize the following adjustments. 1. Services provided but unbilled and uncollected at July 31 were $1‚700. 2. Depreciation on equipment for the month was $180. 3. One-twelfth of
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Kelly pitney began her consulting business‚ Kelly Consulting‚ on April 1‚ 2010. The accounting cylcle for Kelly Consulting for April ‚ including financial statements was illistrated on page 157-168. During May‚ kelly consulting entered the following transactions: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees‚ $2‚500. 5. Received cash from clients on account‚ $1‚750. 9. Paid cash for a newspaper advertisement‚ $300. 13. Paid
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the expectation of repayment. For example‚ if an employee is given money by a company and the money is expected to be repaid or spent for company purposes‚ the amount will be recorded in this current asset account until it is repaid or until the expense documentation is provided. Inventories - A current asset whose ending balance should report the cost of a merchandiser’s products awaiting to be
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following selected events and transactions occurred during April. April 1 Stockholders invested $40‚000 cash in the business in exchange for common stock. 4 Purchased land costing $30‚000 for cash. 8 Incurred advertising expense of $1‚800 on account. 11 Paid salaries to employee $1‚500. 12 Hired park manager at a salary of $4‚000 per month‚ effective May 1. 13 Paid $1‚500 cash for a one –year insurance policy. 17 Declared and paid a
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