Chapter 9 - Chapter 9 Land unlimited useful life Cash price...

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Chapter 9 Land –unlimited useful life Cash price of property Net removal cost of warehouse Attorney's fees Cost of Land Title fee Real estate broker’s commission Accrued property tax Proceeds from salvage sale is subtracted Land Improvements - Limited useful lives Structural additions made to land Buildings –Facilities used in operations Purchase costs: Purchase price, closing costs and real estate broker’s commission. Remodeling, replacing, repairing cost Construction costs: Contract price, architects’ fees, building permits, and excavation costs. Equipment –assets used in operations Costs usually include: cash purchase price sales taxes freight charges insurance during transit paid by the purchaser Cost in assembling, installing, and testing the unit Prepare the journal entry . Delivery truck 23,820 License expense 80 Prepaid insurance 1,600 Cash 25,500 1) Straight-Line Method Deprecation Cost= cost of plant asset- salvage value Depreciable Cost = Annual Depreciation Estimated useful life Ordinary Repairs Maintenance Expense Maintainsefficiency and useful life. Debit to repair or maintenance expense
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This note was uploaded on 02/24/2011 for the course BUS 310 taught by Professor Markbambach during the Fall '10 term at University of Delaware.

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Chapter 9 - Chapter 9 Land unlimited useful life Cash price...

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