...Week 2 CheckPoint Reflection During the useful life of a plant asset, a company may incur costs for ordinary repairs, additions, or improvements (Weygandt, Kimmel, & Kieso, 2010, p. 409). Costs incurred for ordinary repairs are considered revenue expenditures. Costs incurred for additions and improvements are considered capital expenditures. Companies incur revenue expenditures to maintain the operating efficiency and productive life of an asset. Usually these are fairly small costs that occur frequently. Examples of revenue expenditures are: Oil changes and tune-ups, maintenance charges, repair costs, renewal expenses, and repainting costs. Companies record the entry of revenue expenditures as a debit to Repair or Maintenance Expense as they are incurred, and a credit to cash or accounts payable (Weygandt, Kimmel, & Kieso, 2010). Companies incur capital expenditures to increase the operating efficiency, productive capacity, or useful life of an asset. Usually these are rather big costs that occur infrequently. Examples of capital expenditures are: Purchase costs, delivery costs, legal charges, installation costs, replacement costs, construction costs, and demolition cost. Companies generally record the entry of a capital expenditure as a debit to the Plant Asset affected, and a credit to cash or accounts payable. Land Improvements, Building, and Equipment all depreciate over the useful life of the asset; land is the exception and it does not depreciate. To review; revenue...
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...XACC-291-Week 2- Reflection Rukaiyah Williams XACC-291 06/28/15 Professor Jana Rideout XACC-291-Week 2- Reflection Small and larger companies daily incur revenue expenditures to upkeep their operating efficiency and productive life of an asset. Expenditures are unavoidable as well as they are very necessary to expand the business. Expenditures are payments of cash or cash equivalent for goods or services. The difference between revenue and capital expenditures is that revenue expenditures are expenses that are immediately charged against revenue as expenses. Regular and periodic repairs are revenue expenditures because they are charged directly to specific accounts. Examples of these accounts would be Repairs and Maintenance Expense. Capital expenditures are expenditures will increase the company’s investment primarily in productive facility. A capital expenditure is an amount spent to attain or improve a long term asset such as buildings or equipment. When recording capital expenditure, it is usually recorded in accounts classified or titled as Property, Plant and Equipment. Generally, because capital expenditures provide income for the company over a period of years, companies are not allowed to deduct the full cost of the asset in the year the expense is incurred. Revenue expenses typically are shorter term expenses because they always required to meet the ongoing operational costs of running a business. (Investopedia, 2015) The contrasting factor of capital and...
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...Ethical Behavior Page 1 Ethical Behavior Jeffrey Wiese II XACC/291 07/26/2015 Rashad Abdullah Ethical Behavior Page 2 President George W. Bush signed the Sarbanes Oxley Act into law on July 30, 2002. This law set new and enhanced standards for public companies and the boards, management and accounting firms. The Sarbanes Oxley Act also brought about considerable changes to the financial reporting and auditing practices of public companies. The act holds top executives for these companies personally responsible for the financial data and its timeliness, with non-compliance having criminal consequences. There are several ways to measure the effectiveness of SOX because effectiveness can mean different things to different people depending on their opinions on what will mean the law is actually working. The first and easiest way one might determine effectiveness is by the amount of fraud that companies have done that have actually been recovered. This determinate will never actually have a true answer because what company will openly admit that yes we...
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...XACC/291 – Week 2 Assignment Thank you for using ACCNerd.com! Don’t hesitate to contact us if you have any questions or need additional help with this assignment. Complete Exercises E9-1, E9-7, & E9-12 and P9-7B E9-1 (A). The cost principle states that assets must be recorded at the cost at which they were acquired. Although plant assets can fluctuate in fair market value, their book value will remain consistent. Companies must compute the total deprecation of the asset and allocate it over the useful life of the asset. (B). 1)$5000-Land 2) $200- Equipment 3) $850-Equipment 4) $17,500-Land Improvements 5) $250-Equipment 6) $8000-Equipment 7) $900-Equipment 8) $75-Equipment E9-7 (A) 1. Cost - | Salvage Value = | Depreciation Cost | $30,000.00 | $2,000.00 | $28,000.00 | Depreciation Cost / | Useful Life= | Annual depreciation expense | $28,000.00 | 8 | $3,500.00 | 2011= $26,500 2012= $23,000 2. Depreciation cost | Total Units of activity | Depreciation cost per unit | $28,000.00 | 100000 | $0.28 | Depreciable cost per unit | Units of activity during the year | Annual depreciation expense | $0.28 | 15000 | $4,200.00 | 2011= 25,800 2012= 21,600 3. Book Value at Beginning of Year | Declining Balance rate | Annual Depreciation Expense | $30,000.00 | 25.00% | $7,500.00 | 2011=22,500 2012= 16,875 (B) 1. Book Value 1/1/2011 $30,000 Less: Salvage Value $2,000 Depreciable Cost $28,000 Remaining...
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...|[pic] |Course Syllabus | | |XACC/291 | | |Principles of Accounting II | | |1/13/2014-3/16/2014 | Copyright © 2011 by University of Phoenix. All rights reserved. Course Description This course introduces accounting concepts in a business environment. Students learn to create and apply accounting documents in making better business decisions. Other topics include plant assets, liabilities, accounting for corporations, investments, statements of cash flows, financial statement analysis, time value of money, payroll accounting, and other significant liabilities. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning...
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...|[pic] |Course Syllabus | | |School of Business | | |XACC/291 Version 1 | | |Principles of Accounting II | Copyright © 2011 by University of Phoenix. All rights reserved. Course Description This course introduces accounting concepts in a business environment. Students learn to create and apply accounting documents in making better business decisions. Other topics include plant assets, liabilities, accounting for corporations, investments, statements of cash flows, financial statement analysis, time value of money, payroll accounting, and other significant liabilities. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning...
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