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