Acc372_Kieso13e_Ch10 - Acquisition and Disposition of...

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Acquisition and Disposition of Property, Plant, and Equipment Kieso 13e Chapter 10
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Overview of PP&E – Transactions --Acquisition Purchase Self-Constructed Other means of acquisition Lump-Sum Purchases Issuance of Stock Through Contribution Exchange of Non- monetary assets Building (Land, Equipment, etc.) Debit / Dr. Credit / Cr. Acquisition
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Overview of PP&E – Transactions –Usage (Depreciation) Use of PP&E Expense Matched during its useful life Accumulated Depreciation- Building (Equipment, etc.) Debit / Dr. Credit / Cr. Depreciation Depreciation Expense Debit / Dr. Credit / Cr. Depreciation Depreciation Expense Debit / Dr. Credit / Cr. Depreciation
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Overview of PP&E – Transactions --Impairment Accumulated Depreciation- Building (Equipment, etc.) Debit / Dr. Credit / Cr. Impairment Loss on impairment Debit / Dr. Credit / Cr. Impairment
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Overview of PP&E – Transactions --Disposal Building (Land, Equipment, etc.) Debit / Dr. Credit / Cr. Disposal Accumulated Depreciation- Building (Equipment, etc.) Debit / Dr. Credit / Cr. Disposal
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Overview of PP&E – Transactions –Disposal (gains or losses) Gain on disposal of assets Debit / Dr. Credit / Cr. Gain Loss on disposal of assets Debit / Dr. Credit / Cr. Loss
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Building (Land, Equipment, etc.) Debit / Dr. Credit / Cr. Acquisition Disposal Beg. Bal. End. Bal. Accumulated Depreciation- Building (Equipment, etc.) Debit / Dr. Credit / Cr. Beg. Bal. Depreciation End. Bal. Disposal Impairment
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Overview of PP&E – Balance Sheet Presentation Balance Sheet Balance Sheet Date Assets Property, Plant, Equipment Building 100 Less: Accumulated Depreciation (20) Building, net book value 80 Land 200 Equipment 300 Less: Accumulated Depreciation (50) Equipment, net book value 250
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Overview of PP&E – Income Statement Presentation Income Statement Income Period Cost of Goods Sold (Depreciation included) Operating Expenses (Depreciation included) Other revenue and expenses Loss on impairment Gain or loss on disposal of assets
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Acquisition Acquisition (LO2) Acquisition (LO2) Acquisition costs: Land, costs: Land, buildings, buildings, equipment equipment (LO3) Self- (LO3) Self- constructed constructed assets assets (LO4) Interest (LO4) Interest costs costs Observations Observations (LO5) Valuation (LO5) Valuation (LO6) (LO6) Cost Cost Subsequent to Subsequent to Acquisition Acquisition (LO7) Dispositions (LO7) Dispositions Cash discounts Cash discounts Deferred Deferred contracts contracts Lump-sum Lump-sum purchases purchases Stock issuance Stock issuance Nonmonetary Nonmonetary exchanges exchanges Contributions Contributions Other valuation Other valuation methods methods Sale Sale Involuntary Involuntary conversion conversion Miscellaneous Miscellaneous problems problems Additions Additions Improvements Improvements and and replacements replacements Rearrangement Rearrangement and reinstallation and reinstallation Repairs Repairs Summary Summary Acquisition and Disposition of Property, Plant, Acquisition and Disposition of Property, Plant, and Equipment and Equipment
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This note was uploaded on 09/11/2011 for the course ACCOUNTING 323 taught by Professor None during the Spring '10 term at Prince George's Community College, Largo.

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Acc372_Kieso13e_Ch10 - Acquisition and Disposition of...

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