AccountingII - Plant Asset

Calculating the annual depreciation using DDB

BV x % = Depreciation

Examples of a plant asset

Building, land, vehicles, office equipment, furniture ,Etc

Accumulated Depreciation is a ? account with a ? balance

Contra asset; credit

Each method confroms to ?

GAAP

What is a plant asset

a permanent asset used in the business

What is Depreciation Expense

a portion of a plant asset that is transferred to an expenses account (

What is a plant asset record

records that record information about each plant asset

How to calculate DDB

100%/number of year = declining rate X 2= DDB

What are the journal entries for : Paid cash for a plant asset

DR: Asset CR: Cash

Journal entries for : Buying an plant asset on account

DR; Asset CR: Accounts Payable

Depreciation Expense have a what balance

Debit

Journal Entry for Depreciation

Debit : Depreciation Credit : Accumulate Depreciation

Journal Entries: Paid cash for Property Tax

Dr:Property Taxes CR: Cash

What is the only asset that is Not Depreciated and why

Land;because it can increase or decrease in value

Moving the asset from Balance sheet to the Income Statement followed what principles

Matching Principle

what is the Easiest method to use

Straight Line Method

T/F.. A business should choose the same method for a single asset category

True

How to calculate SL

historical cost - salvage value then divide by useful life

What is Real Property

land and anything attach to it

What is Salvage Value

the amount expected to receive for an asset when it disposed

What is Historical Cost

the amount paid for an asset and what is cost

What is Useful Life

the number of year is plan for the asset to be use