Slide 9-1 Chapter 9 Plant Assets and depreciation Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 9-1 Irwin/McGraw-Hill Chapter 9 Plant Assets and Depreciation
Slide 9-2 Plant assets Long-lived assets acquired for use in business operations Similar to long-term prepaid expenses Date DebitCredit 田田田田田田田 As years pass, and the The cost of plant assets services are used. the is the advance purchase cost is transferred to of services depreciation expense Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 9-2 Irwin/McGraw-Hill Plant Assets Long-lived assets acquired for use in business operations. Similar to long-term prepaid expenses The cost of plant assets is the advance purchase of services. Date Description Debit Credit As years pass, and the services are used, the cost is transferred to depreciation expense
Slide 9-3 Major Categories of Plant Assets Tangible Plant Intangible Natural Assets Assets Resources Long-term Noncurrent assets Sites acquired for assets having with no physical extracting valuable physical substance substance resources Land, buildings Patents, copyrights Oil reserves equipment trademarks timber. other furniture. fixtures franchises, goodwill minerals Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 9-3 Irwin/McGraw-Hill Land, buildings, equipment, furniture, fixtures. Long-term assets having physical substance. Tangible Plant Assets Patents, copyrights, trademarks, franchises, goodwill. Noncurrent assets with no physical substance. Intangible Assets Oil reserves, timber, other minerals. Sites acquired for extracting valuable resources. Natural Resources Major Categories of Plant Assets
Slide 9-4 Accountable events ① Acquisition aLlocation of the acquisition cost to expense over the asseta useful life (depreciation) sAle or disposal Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 9-4 Irwin/McGraw-Hill Accountable Events Acquisition. Allocation of the acquisition cost to expense over the asset抯 useful life (depreciation). Sale or disposal
Slide 9-5 Acquisition of Plant Assets Asset price Cost Reasonable and necessary costs∴. for getting for getting the asset to the the asset ready desired location for use Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 9-5 Irwin/McGraw-Hill Acquisition of Plant Assets Asset price Reasonable and necessary costs . . . . . . for getting the asset to the desired location. . . . for getting the asset ready for use. Cost