The following expenditures relating to plant assets were made by Georgie
Company during the first 2 months of 2014.
1. Paid $5,000 of accrued taxes at time plant site was acquired.
2. Paid $200 insurance to cover possible accident loss on new f
K. Billie, S. Piper, and E. Rose are forming a partnership. Billie is transferring
$50,000 of personal cash to the partnership. Piper owns land worth $15,000 and
a small building worth $80,000, which she transfers to the partnership. Rose
Angela has prepared the following list of statements about corporations.
1. Corporation management is both an advantage and a disadvantage of a corporation
compared to a proprietorship or a partnership.
2. Limited liability of stockholders, gov
The following selected transactions relate to Dylan Company.
Mar. 1 Sold $20,000 of merchandise to Potter Company, terms 2/10, n/30.
11 Received payment in full from Potter Company for balance due.
10 Wrote off as uncollectible $16,000 of accou
Financial information for Blevins Inc. is presented below.
December 31, 2014
December 31, 2013
Plant assets (net)
The most important notes
Cash realizable value= account receivable- allowance for doubtful accounts
1- percentage of sales (ignore allowance balance)
Net sales* percentage
Plant Assets, Natural Resources,
and Intangible Assets
Plant assets are resources that have
physical substance (a definite size and shape),
are used in the operations of a business,
are not intended for sale to customers,
are expected to p