Kế toán doanh nghiệp - Chapter 8: Reporting and analyzing long - Term assets
Update depreciation to the date of disposal Journalize disposal by: Recording cash received (debit) or paid (credit Recording a gain (credit) or loss (debit)
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Financial AccountingJohn J. WildSeventh Edition Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 8Reporting and Analyzing Long-Term AssetsCalled Property, Plant & EquipmentPlant AssetsExpected to Benefit Future PeriodsActively Used in OperationsTangible in NatureC18-*Decline in asset value over its useful life Use2. Allocate cost to periods benefited3. Account for subsequent expenditures Disposal 4. Record disposalPlant Assets Acquisition1. Compute costC18-*Depreciation is the process of allocating the cost of a plant asset to expense in the accounting periods benefiting from its use. CostAllocationAcquisition Cost(Amount yet to be depreciated)Balance Sheet(Amount depreciated)Income StatementExpenseDepreciationP1 8-* Straight-line Units-of-production Declining-balanceDepreciation MethodsP18-*Straight-Line MethodCost - Salvage value Useful life Depreciationexpense for period=$9,000 Depreciationexpense per year=$50,000 - $5,000 5 years=P18-*Units-of-Production MethodStep 2:Depreciation Expense=DepreciationPer Unit×Number of Units Produced in the PeriodDepreciationPer Unit= Cost - Salvage Value Total Units of ProductionStep 1:P18-*Double-Declining-Balance MethodStep 2:Double-declining- balance rate= 2 × Straight-line rate = 2 × 20% = 40%Step 1:Straight-line rate=100 % ÷ Useful life = 100% ÷ 5 = 20%Step 3:Depreciation expense=Double-declining- balance rate×Beginning period book value40% × $50,000 = $20,000 for 2013P18-* Recording cash received (debit) or paid (credit)Removing accumulated depreciation (debit) Update depreciation to the date of disposal Journalize disposal by:Removing the asset cost (credit) Recording a gain (credit)or loss (debit)Disposals of Plant AssetsP28-*Natural Resources: Cost Determination and DepletionStep 2:Depletionexpense=Depletionper unit×Units extracted and sold in periodDepletionper unit= Cost - Salvage value Total units of capacityStep 1:P38-*Noncurrent assets without physical substanceUseful life is often difficult to determineUsually acquired for operational useIntangible AssetsOften provide exclusive rights or privilegesIntangible AssetsP48-*End of Chapter 88-*
