(i) As the plant was acquired for the company’s own use, and thus treat as non-current asset for the company. The plant is a newly addition of non-current assets for Creative. The cost of the newly acquired plant should be recorded in the book at the date of acquisition. [interest expense?] Moreover, the plant was financed by an 8% loan, Depreciation for the year, amounting $500,000 have to be recorded, debiting the Profit and loss account and crediting the Accumulated depreciation account,
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financial statements of Procter & Gamble. All figures will be in millions. The descriptions used by Procter & Gamble in its balance sheet to classify its property, plant, and equipment (PP&E) are; Buildings, Machinery and Equipment, and Land. Two out of the three descriptions of PP&E would be amortized, those being Buildings, and Machinery and Equipment. Land would not be amortized because most likely the economic value of land will increase, not decrease over time. (investopedia). The method of depreciation
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Table of Contents: Pg. 3…………………………………………………………………………………………….Introduction Pg. 4…………………………………………………………………………………………….P, P, &E Pg. 4…………………………………………………………………………………………….Figure 1: P,P,&E Balance Sheet Pg. 5…...............................................................................................Figure 2: Depreciation Life Pg. 5……………………………………………………………………………………………..Income Tax Depreciation Pg. 5……………………………………………………………………………………………..Intangible Assets Pg. 6….............................
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Baron Coburg’s Sole Proprietorship Tabulated Information for Plot worked by Ivan For the Growing Season Bushels of Wheat Pre-season Land 100 bw. 20 bw. 2 bw. SUBTOTAL TOTAL Post-Season 0 bw. 162 bw. 243 bw. 100 bw. 20 bw. 2 bw. 40 bw. 40 bw. 0 bw. 0 bw. 162 bw. Seed Fertilizer Ox Plow = Accounts Payable Owners’ Equity 100 bw. 20 bw. 2 bw. 40 bw. 162 bw. 243 bw. -2 bw. -20 bw. -4 bw. Description of Transaction Land from Baron Seeds from Baron Fertilizer from Baron Ox from Baron -2
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ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 1 2011 pp. 155–162 American Accounting Association DOI: 10.2308/iace.2011.26.1.155 Bioscience Company: Accounting for Idle Plant Assets Victoria Dickinson, Paul Kimmel, and Terry Warfield ABSTRACT: Bioscience Company and its auditors have been in discussions with the SEC concerning the accounting for its long-lived assets. Among the issues being discussed is the company’s discontinuation of depreciation on productive assets that it had used previously
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According to “Financial Accounting, sixth edition”, cash flow “permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners”. Analyzing cash flow enables one to understand what happened to cash and cash equivalents throughout a specific period – how to the beginning balance of cash become the ending balance. The statement classifies cash flow in three different categories; operating activities, investing activities,
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College Number(Bottom Left of College Card) | 100724676 | Year: | 3 | Course Code | MN3245 | Course Tutor: | Professor Christopher Napier1 | Assignment No.: | 1 | Degree Title: | Management with Accounting | Question No. & Title: | Fair Value Accounting Standard | Candidate Number: 1401240 Fair Value Accounting International Accounting Standard Board defines Fair Value and it gives a guide on how to measure it in the IFRS13 section. Fair Value is “ the price that would
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CHAPTER 64H TAX ON RETAIL SALES OF CERTAIN TANGIBLE PERSONAL PROPERTY, CHAPTER 64H Imposition and Rate of Tax Statutes Cases & Rulings Regulations CCH Explanations The following sales and the gross receipts therefrom shall be exempt from the tax imposed by this chapter:— 6(a) Sales which the commonwealth is prohibited from taxing under the constitution or laws of the United States. 6(b) Sales of tangible personal property in transit or stored at points of entry intended for export or
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for inventories. Moreover, the elephants meet the criteria for “property, plant and equipment”. According to IAS-16, Property, plant and equipment are tangible items that: (a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and (b) are expected to be used during more than one period. According to IAS-16, The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if: (a) it is probable
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| Current assets are assets that are expected to be converted to cash or used up by the business within one year or the normal operating cycle, whichever is shorter. | | | | | True | | | False | | | | Score: 0 of 1 | | 2. | The current ratio is a liquidity ratio that is computed as current assets divided by current liabilities. | | | True | | x | False | | | | Score: 1 of 1 | | 3. | Conservatism in accounting means that small monetary items can be ignored
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