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Friday, December 14, 2018

'Exercises and Problems Essay\r'

'Trudy Comp any incurred the following costs.\r\n1. Sales revenue enhancement on factory machinery corruptd $ 5,000\r\n2. Painting of and lettering on truck immediately upon purchase 700 3. Installation and interrogatory of factory machinery 2,000\r\n4. Real estate broker’s commission on land purchased 3,500 5. Insurance subsidy paid for first year’s redress on new truck 880 6. Cost of grace on property purchased 7,200\r\n7. Cost of paving position lot for new building constructed 17,900 8. Cost of clearing, draining, and weft land 13,300\r\n9. Architect’s fees on self-constructed building 10,000\r\nItems of property, plant and equipment should be initially recorded at cost. Costs include all costs in which atomic number 18 necessary to assure the assets are in working condition for their think use. This includes original purchase prices along with costs of site preparations, delivery, handling, installation, professional fees include for architects and engineers with estimations for dismantling and removing these assets for restoration of original site. Knowing managements intended use comes in very handy and is super important when applying this cost principle. Cost principle assets are to be recorded at cost this equals the tax which was reciprocated at the time of the attainment. Assets in the United States standardised land and buildings appreciate in value oer a given period of time these items do not set out revalued for future financial reporting. tape transport costs form part of the asset costs, just; the cost of accidental insurance or any type of insurance during the later periods are recur expenses which benefit and is not received for short term, slight than a year therefore; it does not get included within the costs of assets.\r\nReferences:\r\nWeygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2010). monetary accounting\r\n(7th ed.). Hoboken, NJ: John Wiley & Sons.\r\n'

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