Chapter+9+Highlights-1

Chapter+9+Highlights-1 - Chapter 9 Highlights Long-term...

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Chapter 9 Highlights Long-term assets Tangible Land – never depreciates! Buildings Equipment Intangible Patent Trademark What can you do with Fixed Assets? Capital Expenditures? Buy them Build them Use them – depreciate them Improve them Add to them Repair them**** Sell them Each item on the above list requires ACCOUNTING What is the cost of buying or building an asset? Invoiced amounts Less Discounts (whether or not you take them!!) Plus Taxes Plus Shipping Plus Installation (whatever it takes to get the asset up and running) Plus Extraordinary repairs What doesn’t count? Repairs- repairs are an expense How did you pay for the asset? Notes Payable o Interest Expense/Interest Payable Cash Stock
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Using the Asset o Depreciation o Accounts involved o Accumulated Depreciation (contra asset) o Depreciation Expense (income statement) o How much to depreciate? o
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Chapter+9+Highlights-1 - Chapter 9 Highlights Long-term...

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