Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Question
Chapter 9, Problem 9.36BP
1.
To determine
Plant Assets: Plant assets refer to the fixed assets having a useful life of more than a year that is, acquired by a company to be used in its business activities, for generating revenue.
Type of costs: The cost of plant assets includes the following costs:
- Purchase price of plant assets
- Attorney fees
- Real estate agent commission
- Title
- Recording fees
- Legal fees
- Architect fees
- Building construction costs
- Interest costs related to the construction
- Sale of salvaged materials
- Additional expenses :
- Clearing
- Filling and leveling of land
- Removing of old buildings
the cost of each asset: land, land improvement, building, and furniture.
2.
To determine
To Record: the
To determine
To Record: the journal entry for the partial year depreciation for building.
To determine
To Record: the journal entry for the partial year depreciation for furniture.
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a.
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b.
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*
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Chapter 9 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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