The logical solution is to use a powerful tool such

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Unformatted text preview: ts, bonding of installation contractor, licensing and certification costs, costs for test materials, costs of training materials and labor while training line personnel and other costs. Some of these costs can be “capitalized” – put on the balance sheet and taken to the income statement over a period of time through depreciation. Others are period expenses and immediately taken to the income statement through an expense account. Payment of these fees and costs may be convoluted. One check paid to an escrow agent may address several issues on property acquisition – some to be capitalized, some to be expensed. A payment to a building fund trust agent may have the same issues – some to be capitalized, some to be expensed costs. The documentation of what check paid for what items and whether it is capitalized or expensed becomes important as these issues will most certainly be reviewed later and are taxation issues in this, and many following taxation periods. The logical solution is to use a powerful tool, such as Excel, to retain the information and values as well as other information. On the “Asset Acquisition” data file there is a sample of what is possible for this purpose. It is not complex or complicated, it is simple and effective. It contains areas for identification of the machine, the supplier and point of contact information, capitalized and period costs detail, and where the documentation of those costs is retained. The recovery of documentation is simplified since the file states that the purchase paperwork is being kept in a fixed asset file in Accounting while the certification paperwork is being kept in the Floor Supervisor’s office for access and presentation during inspections. While this could become a “standard form”, it can easily be changed to meet the requirements of the acquisition since, as an Excel document, it can be easily edited. To preclude editing the base copy, it could be saved as an Excel “Template”, discussed elsewhere, making it a “Read Only” file requiring renaming before saving after data is entered. Section 2, Page...
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This note was uploaded on 09/19/2010 for the course ACCT 220 taught by Professor Ullmann during the Fall '10 term at University of Nebraska Kearney.

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