Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Question
Chapter 10, Problem 12E
a.
To determine
Recognize the event that signifies the
b.
To determine
The reason for recognizing depreciations on tools used in manufacturing industries affects the financial statements differently and identifies the depreciation on tools used in service industry.
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Exercise 22-10
Listed below are various types of accounting changes and errors.For each change or error, indicate how it would be accounted for using the following code:
1.
Change in a plant asset’s salvage value.
select a type of accounting approach
2.
Change due to overstatement of inventory.
select a type of accounting approach
3.
Change from sum-of-the-years’-digits to straight-line method of depreciation.
select a type of accounting approach
4.
Change from presenting unconsolidated to consolidated financial statements.
select a type of accounting approach
5.
Change from LIFO to FIFO inventory method.
select a type of accounting approach
6.
Change in the rate used to compute warranty costs.
select a type of accounting approach
7.
Change from an unacceptable accounting principle to an acceptable accounting principle.
select a type of accounting approach
8.
Change in a patent’s…
QUESTION 17
Which entry would be used to record depreciation on manufacturing equipment:
Debit Credit
O
O
O
Manufacturing Overhead XXX
Accumulated Depreciation
XXX
Debit Credit
Depreciation Expense XXX
Manufacturing Overhead
XXX
Debit Credit
Accumulated Depreciation XXX
Manufacturing Overhead
XXX
Debit Credit
Manufacturing Overhead XXX
Depreciation Expense
XXX
Question 11?
Chapter 10 Solutions
Survey Of Accounting
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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Similar questions
- In Principles of Accounting I, we learned the journal entry for depreciation is: Debit – Depreciation Expense $X,XXX Credit – Accumulated Depreciation - (asset) $X,XXX 1) How is depreciation recorded differently under job order costing and how would you explain the difference to a non-accountant? 2) Suppose you had to record depreciation of $700 on factory equipment and $225 on office equipment. What would the journal entry look like?arrow_forwardNonearrow_forwardA manufacturing plant use for manufacturing a discontinued product is classified on the balance sheet as... Group of answer choices Inventory Other Assets Long-Term Investment Property, Plant, and Equipmentarrow_forward
- 49 List of Statements 1. The job ticket is used to allocate each labor hour of work to specific WIP accounts. 2. Because fixed assets are requested and employed by end-users asset acquisitions should be formal and explicitly authorized. Which of the statement(s) above is(are) invalid? O Both statements are valid Statement 2 O Both statements are invalid O Statement 1 answer onlyarrow_forwardWithin the accounting system of a group of companies, the following types of expenses are incurred. Complete the following table by placing each expense in the correct cost classification. Reference Number Types of expenses 1 Costs of opening a new facility 2 Costs of conducting business in a new location or with a new class of customer (including costs of staff training) 3 Costs of site preparation 4 Costs of testing whether the asset is functioning properly 5 Electrical installation costs 6 Costs of dismantling and removing the item and restoring the site on which it is located 7 Administration costs 8 Import duty of an imported machine 9 Purchase of a five-year maintenance contract with plant 10 Legal fees for sales and purchase agreement for acquisition of land 11 Interest on loan on a self constructed property after the asset is ready for use 12 Architect fees incurred for self constructed building 13 General overheads incurred for self…arrow_forwardMa4. TB MC Qu. 12-42 (Static) Select the incorrect statement... Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment. Multiple Choice Recognizing depreciation on manufacturing equipment is an asset exchange event. Incorrect Depreciation on manufacturing equipment is an indirect product cost. Recognizing depreciation on manufacturing equipment decreases the equipment's book value and increases the Manufacturing Overhead account. If the equipment was used to work on a job, the amount of depreciation must be entered on the appropriate job cost sheet.arrow_forward
- State and classify the items as per Theory of constraints: 1.Depreciation of a machinery 2.Rental utilities 3.R & D costs 4.Equipment & buildings-costs 5.Raw materials in stock 6.Sales of the product 7.Inventory-Finished goodsarrow_forwardWhich one of the following accounts is an asset similar to work-in-process inventory? Group of answer choices Construction in Progress Cost of Construction Billings in Excess of Cost Revenue from Long-Term Contractsarrow_forwardSubject - account Please help mearrow_forward
- Depreciation expense on equipment a could be either a product cost or a period cost, depending on whether it is factory equipment or office equipment that is being depreciated. • b. is neither a product or a period cost. • c. is always a period cost• d. is always a product costarrow_forward1. State whether each of the below is Capital Expenditure or Revenue Expenditure. Purchase of new delivery vehicle Payment of an invoice for advertising а. b. Costs of clearing the site ready for an extension to the factory building Signwriting on the outside of the new delivery vehicles Redecoration of the office с. d. е. f. Payment of delivery driver's wages g. Fuel for delivery vehicles h. Fitting of shelving in delivery vehiclearrow_forwardList of accounts Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Cash Cost of Completed Service Contracts Cost of Goods Sold Depreciation Expense Employer Fringe Benefits Payable Employer Payroll Taxes Payable Factory Labor Factory Wages Payable Finished Goods Inventory Manufacturing Overhead Operating Overhead Prepaid Property Taxes Raw Materials Inventory Salaries and Wages Payable Sales Revenue Service Contracts in Process Service Salaries and Wages Supplies Utilities Payable Work in Process Inventoryarrow_forward
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