Lump sum Purchase: When the assets are purchased or bought in a lot in one transaction at a lump sum price that is called lump sum purchase. In lump sum purchase, apportion cost of purchase on the basis of relative market value can be anticipated by appraisal. Plant Assets: Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. They include all the normal cost and reasonable expenditures that are spent to put that particular plant asset to use. Journal Entries : Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order. Accounting rules for journal entries : To Increase balance of the account : Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To Decrease balance of the account : Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. To prepare: Journal entry .

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Chapter 8, Problem 3E

To determine

Lump sum Purchase:

When the assets are purchased or bought in a lot in one transaction at a lump sum price that is called lump sum purchase. In lump sum purchase, apportion cost of purchase on the basis of relative market value can be anticipated by appraisal.

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. They include all the normal cost and reasonable expenditures that are spent to put that particular plant asset to use.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: Journal entry.

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Answer 2

Question

Chapter 8, Problem 3E

To determine

Lump sum Purchase:

When the assets are purchased or bought in a lot in one transaction at a lump sum price that is called lump sum purchase. In lump sum purchase, apportion cost of purchase on the basis of relative market value can be anticipated by appraisal.

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. They include all the normal cost and reasonable expenditures that are spent to put that particular plant asset to use.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: Journal entry.

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Answer 3

Question

Chapter 8, Problem 3E

To determine

Lump sum Purchase:

When the assets are purchased or bought in a lot in one transaction at a lump sum price that is called lump sum purchase. In lump sum purchase, apportion cost of purchase on the basis of relative market value can be anticipated by appraisal.

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. They include all the normal cost and reasonable expenditures that are spent to put that particular plant asset to use.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: Journal entry.

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Answer 4

Question

Chapter 8, Problem 3E

To determine

Lump sum Purchase:

When the assets are purchased or bought in a lot in one transaction at a lump sum price that is called lump sum purchase. In lump sum purchase, apportion cost of purchase on the basis of relative market value can be anticipated by appraisal.

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. They include all the normal cost and reasonable expenditures that are spent to put that particular plant asset to use.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: Journal entry.

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Answer 5

Chapter 8, Problem 3E

To determine

Lump sum Purchase:

When the assets are purchased or bought in a lot in one transaction at a lump sum price that is called lump sum purchase. In lump sum purchase, apportion cost of purchase on the basis of relative market value can be anticipated by appraisal.

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. They include all the normal cost and reasonable expenditures that are spent to put that particular plant asset to use.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: Journal entry.

Answer 6

Chapter 8, Problem 3E

To determine

Lump sum Purchase:

When the assets are purchased or bought in a lot in one transaction at a lump sum price that is called lump sum purchase. In lump sum purchase, apportion cost of purchase on the basis of relative market value can be anticipated by appraisal.

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. They include all the normal cost and reasonable expenditures that are spent to put that particular plant asset to use.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: Journal entry.

Answer 7

Chapter 8, Problem 3E

To determine

Lump sum Purchase:

When the assets are purchased or bought in a lot in one transaction at a lump sum price that is called lump sum purchase. In lump sum purchase, apportion cost of purchase on the basis of relative market value can be anticipated by appraisal.

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. They include all the normal cost and reasonable expenditures that are spent to put that particular plant asset to use.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: Journal entry.

Answer 8

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Answer 11

Ch. 8 - Prob. 1MCQ Ch. 8 - Prob. 2MCQ Ch. 8 - A company purchased machinery for $10,800,000 on...Ch. 8 - Prob. 4MCQ Ch. 8 - Prob. 5MCQ Ch. 8 - Prob. 1DQ Ch. 8 - What is the general rule for cost inclusion for...Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ

Solution Summary: The author explains the accounting rules for journal entries, which record every transaction that happens in the business in chronological order.

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Chapter 8 Solutions