Take the following quiz on plant assets and then check the answers on the last page of the lecture. The book can also effectively be used in a graduatelevel financial accounting course for mba students who are from nonbusiness major backgrounds. Valuing these assets is different from valuing other types of assets, such as real estate and intangibles, because the values can. Plant assets, natural resources, and intangible assets powerpoint. Chapter 9 plant assets, natural resources, and intangibles. Start studying chapter 9 plant assets, natural resources, and intangibles. Explain how to account for the exchange of plant assets appendix. The second section of the chapter discusses assets generally classi. Explain the basic issues related to accounting for intangible. Chapter 10 plant assets, natural resources, and intangible assets answers to questions 1. The previous book value of these assets is not relevant to big. Access is free online or you can purchase a hard copy of the complete text or a downloadable pdf.
Specify the rules regarding goodwill impairment and the capitalization of intangible assets. Chapter 9 plant assets, natural resources, and intangible assets selection from problem solving survival guide to accompany financial accounting, 8th edition book. In a sale of plant assets, the book value of the asset is compared to the proceeds received from the sale. Accounting for depreciation to date of disposal when selling or otherwise disposing of a plant asset, a firm must record the depreciation up to the date of sale or disposal. Powerpoints the powerpoint viewer has been retired matcha creations the word viewer has been retired selftests. For plant assets, the historical cost principle means that cost consists of all expenditures necessary to acquire the asset and make it ready for its intended use. In a sale of plant assets, the book value of the asset is compared to the proceeds received from the. Chapter 9 questions multiple choice harper college. The cost of plant assets includes all expenditures necessary to acquire the asset and make it ready for its intended use. Additions and improvements costs incurred to increase the operating efficiency, productive capacity, or useful life of a plant asset. This chapter covers accounting for ppe assets, including acquisition, depreciation, and disposal. Accounting chapter 10 plant assets, natural resources. Sep 28, 2016 b the accounting for intangibles acquired in a business combination.
Compute periodic depreciation using different methods. Plant assets, natural resources, and intangible assets long term assets financial accounting, seventh edition slide 9 2. The accounting issues involved with the acquisition, use, and disposition of intangible assets are. Chapter 9 powerpoint free download as powerpoint presentation. Chapter 16 accounting for plant assets and depreciation. Accounting for plant assets financial accounting cpa exam far. Chapter 9 powerpoint depreciation intangible asset scribd. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Financial accounting and reporting, 2nd edition, by murphy smith, katherine taken smith and shannon knight deer, is especially designed to present financial accounting in a onesequence course in 2year or 4year colleges. Once cost is established, the company uses that amount as the basis of accounting for the plant assets over its useful life. Plant assets, natural resources, and intangible assets flashcards from sean r. On the other hand, intangibles may be purchased from another party. Webassign financial accounting and reporting 2nd edition. Rent textbook financial and managerial accounting by horngren, charles t.
Examples of land improvements include driveways, parking lots, fences, and underground sprinklers. Accounting for plant assets financial accounting cpa exam far ch 9 p 1. His principles of accounting textbook includes interactive components to aid the learning process. Entries for cash and lumpsum purchases of property, plant and equipment. If the proceeds of the sale exceed the book value of the plant asset, a gain on disposal occurs. Accelerateddepreciation method depreciation method that produces higher depreciation expense in the early years than in the later years. Accounting 1 chapter 9 book answers chapter 9 plant. Plant and intangible assets chapter 9 powerpoint authors. Examples of intangible assets are s, patents, and licenses. Assets that are expected to be used by the business for more than one year are considered longterm assets. The navigator 398 plant assets, natural resources, and intangible assets section 1 plant assets plant assets are resources that have three characteristics.
The content and organization of chapter 9 are as follows. Weygandt intermediate accounting 9e solutions manual ch09. Chapter 9 plant and intangible assets skills learning objectives overview of brief exercises, exercises, problems, and critical. A business perspective, financial accounting chapters 9 18 a textbook equity open college textbook originally by hermanson, edwards, and maher. Chapter 9 plant assets and intangibles short exercises 5 min. Questions what is the main distinction between inventory and a plant asset. Book value is calculated as the historical cost of the asset minus the accumulated depreciation. Get free chapter 9 accounting answers chapter 9 plant assets and intangibles short exercises 5 min. The cost of an intangible asset with an indefinite life should. Plant assets are longlived, tangible assets used in the operation of a business. Choose from 500 different sets of chapter 9 accounting intangible assets flashcards on quizlet. Study 31 chapter 8 reporting and interpreting property, plant, and equipment. Accounting for plant assets financial accounting cpa. Define depreciation as the term is used by accountants.
For example, one company may need to utilize technology embedded in a patent right belonging to someone else. Identify the basic issues related to reporting intangible assets. Intermediate accounting 16e chapter 12intangible assets issuu. Accounting, 5e explores the accounting issues facing companies such as target, nantucket nectars, teva. Chapter 9 plant assets, natural resources, and intangible assets learning objectives after studying this chapter, you should be able to. Weygandt accounting principles 11e solutions manual ch10. This portion of the acquisition value is assumed to be the historical. The accounting for an intangible asset is to record the asset as a longterm asset and amortize the asset over its usefu. Intangible assets in financial accounting duration. Table of contents from principles of accounting accounting cycle chapter 1. The book can also effectively be used in a graduatelevel financial accounting course for mba students who are from non. Prepare entries for cash and lumpsum purchases of property, plant and equipment.
Chapter 9 plant assets, natural resources, and intangible assets. C cost of the asset and the accumulated depreciation to date. Explain selection from financial and managerial accounting book. Your plane has landed, youve finally found your bags, and youre dying to hit the tylosand beach in halmstad, swedenbut first you need a vehicular unit to get you there.
If the fair value of the old machine is less than its book value, tatum should. Petty cash fund journal entries establish an imprest petty cash fund for s200 on april 1, 2011 replenish the petty cash fund on may 1 when the fund has si4 in cash and receipts for s12 postage, si7 office supplies, s23 for a taxi fare used for travel. Learn chapter 9 accounting intangible assets with free interactive flashcards. Plant assets, natural resources, and intangible assets summary 1. Chapter 9 reporting and analyzing longlived assets. Ch 10 solutions chapter 10 plant assets natural resources. College accounting chapter 10 plant assets, natural resources.
The book value of a plant asset is the difference between the. They are not intended for resale and are anticipated to help generate revenue for the. Start studying accounting chapter 10 plant assets, natural resources, and intangibles. If the proceeds of the sale are less than the book value of the plant asset sold, a loss on disposal occurs. We examine asset acquisition issues concerned with use and depreciation, and the sale or disposition of these assets. Chapter 9 plant assets, natural resources, and intangible assets section 1 plant assets plant assets three characteristics. Ch 9 solutions chapter 9 plant assets and intangibles. Chapter 9 powerpoint depreciation intangible asset. For example, if it sold an asset on april 1 and last recorded depreciation on december 31, the company should record depreciation for three months january 1april 1. After studying this chapter, you should be able to. Jul 01, 2019 chapter 10 plant assets, natural resources, and intangibles. Weygandt financial accounting 9e chapter 9 plant assets, natural resources, and intangible assets number lo bt difficulty time min. Chapter 9 plant assets natural resources and intangible.
Plant assets and intangible assets long term assets. All of the following are key similarities between gaap and ifrs with respect to accounting for intangible assets except. These longlived productive assets have two distinguishing characteristics. Plant assets, natural resources, and intangibles 1. Distinguish between tangible and intangible assets. When intangibles are purchased, the cost is recorded as an intangible. Asset valuation equipment knowing how much the machinery and equipment are worth will determine the amount of goodwill that you are paying for as part of the overall purchase price. We explain how to account for a longterm assets cost, the allocation of. Explain the basic issues related to accounting for intangible assets. Chapter 9 plant assets natural resources and intangible assets. Chapter 11current liabilities and payroll accounting. Indicate how plant assets, natural resources, and intangible assets are reported and analyzed. Compute periodic depreciation using the straightline method, and contrast its expense pattern with those of other methods.
This playlist covers cost of plants assets, depreciation methods, disposal of plant assets, accounting of natural resources, intangible assets and exchange of plant assets. The four main issues in accounting for plant assets. Eliminate the book value of the plant at the of sale by debiting accumulated depreciation and crediting the asset. Chapter 9 plant assets, natural resources, and intangible. Download principles of accounting textbook pdf latest. When intangibles are purchased, the cost is recorded as an intangible asset. Also included in the chapter are accounting for intangible assets and brief coverage of natural resources. Accounting chapter 9 plant assets, natural resources, and. Chapter 9 plant assets, natural resources, and intangible assets feature story how much for a ride to the beach. Plant assets, natural resources, and intangible assets. Principles of accounting chapter 9 ppt depreciation. Chapter 102 accounting principles, ninth edition study objectives 1. Chapter plant assets, natural resources, and intangible assets after studying this chapter, you should be able to.
Study chapter 9 plant assets, natural resources, and intangibles flashcards from tracy flottes class online, or in brainscapes iphone or android app. Introduction to accounting 2 modul 3 plant assets, natural. Plant assets, natural resources and intangible assets. Natural resources consist of underground deposits of oil, gas, and minerals, and standing timber.
Plant assets, natural resources, and intangible assets powerpoint slides. Describe how the cost principle applies to plant assets. Mgmt e financial accounting principles chapter 9 plant assets, natural. Chapter 8 reporting and interpreting property, plant, and equipment. Weygandt financial 2e ifrs ch09 tamkang university. Chapter 15investments and international operations. Plant assets, natural resources, and intangible assets accounting 101 with elle parsons at massachusetts bay community college studyblue. Financial accounting chapter 9 financial accounting.
Chapter 8 reporting and interpreting property, plant, and. Brief contents chapter 1 accounting and the business environment chapter 2 recording business transactions chapter 3 the adjusting process chapter 4 completing the accounting cycle chapter 5 merchandising operations chapter 6 merchandise inventory chapter 7 internal control and cash chapter 8 receivables chapter 9 plant assets and intangibles chapter 10 current liabilities, payroll, and long. Accounting for property, plant, and equipment chapter 9. Chapter 9 plant assets, natural resources, and intangible assets assignment classification table study objectives questions brief exercises do it. Identify factors that affect the determination of service life. When disposing of a plant asset, a company must remove both the assets cost and accumulated depreciation from the accounts. Powerpoints the powerpoint viewer has been retired. Or beginning book value of the current year depreciation expense. Given the following account balances at year end, compute the total intangible assets on the balance sheet of janssen enterprises.
Explain the accounting for plant asset expenditures. Intermediate accounting 16e chapter 12intangible assets. Plant assets financial accounting cpa exam far youtube. May 03, 2017 this chapter introduces us to longterm assets, including plant assets, natural resource assets, and intangible assets. Start studying accounting chapter 9 plant assets, natural resources, and intangibles. Accounting 1 chapter 9 book answers chapter 9 plant assets. Chapter 9 financial accounting notes to upload acc 211. All plant assets except land eventually wear out or become inadequate or obsolete and must be sold, retired, or traded for new assets. Chapter 9 plant assets and intangibles 661 chapter 9 plant assets and intangibles short exercises 5 min. Plant assets are reported on the balance sheet at book value cost. Jul 25, 2018 an intangible asset is a nonphysical asset that will be consumed over more than one accounting period. Plant assets, natural resources, intangible assets. Principles of accounting chapter 9 ppt free download as powerpoint presentation.
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