Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. To explain: Historical cost principle applies to plant assets

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Answer 1

Question

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

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INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. 1. A business donated rent-free office space to the organization that would normally rent for $35,600 a year. 2. A fund drive raised $188,000 in cash and $106,000 in pledges that will be paid next year. A state government grant of $156,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $209,160. At year-end, an additional $16,600 of salaries and fringe benefits were accrued. 4. A donor pledged $106,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,860. 5. Office equipment was purchased for $12,600. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $10,200 was donated by a local office…

Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor unges Description 920 hours $27 per hour 190 hours for Job 101 340 hours for Job 102 Factory supervision Production engineer Factory Janitorial work Selling, general, and administrative salaries Total payroll costs Required: 390 hours for Job 103 Total Cost $ 5,130 9,180 10,530 $ 24,840 4,350 7,100 1,200 8,800 $ 46,298 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet A B Record Fairfield Company's payroll costs to be paid at a later date. Note Enter debits before credits. S.No Date 1 Account Title Debit Credit

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Answer 2

Question

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

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Answer 3

Question

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

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Answer 4

Question

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

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Answer 5

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

Answer 6

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

Answer 7

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Answer 8

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

Answer 12

Ch. 9 - Prob. 1Q Ch. 9 - Prob. 2Q Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - In the fourth year of an assets 5-year useful...

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. To explain: Historical cost principle applies to plant assets

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. To explain: Historical cost principle applies to plant assets

Explanation of Solution

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Chapter 9 Solutions

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets