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Exam II ResultsA 208-187B 186-166C 165-145D 144-124F 124-104low-F <104
Median: 74.5
Mean: 71.5
A’s: 16% of students
C or better: 61% of students
High Score: 208/208
Low Score: 41/208
Unit 3Chapter 8: Day 2
Why Bank Reconciliations?
“Balance the Checking Account”
1. Account for Time Lags2. Detect Errors
Bank Reconciliation Process
Bank Statement Balance
Check Book Register Balance
Bank ReconciliationP3
The balance of a checking account reported on the bank statement rarely equals the balance in
the depositor’s accounting records.
Cash Balance per Bank
+ Deposits in Transit
- Outstanding Checks
+/- Errors
Adjusted Cash Balance
Cash Balance per Book
+ Collections & Interest
- Uncollectible items
+/- Errors
Adjusted Cash Balance
Adjusting entries are recorded for the reconciling items on the book side of the reconciliation.
=
Bank ReconciliationP3
Cash Balance per Bank
+ Deposits in Transit
- Outstanding Checks
+/- Errors
Adjusted Cash Balance
We follow nine steps in preparing the bank reconciliation.
Bank ReconciliationP3
We follow nine steps in preparing the bank reconciliation.
Cash Balance per Book
+ Collections & Interest
- Uncollectible items
+/- Errors
Adjusted Cash Balance
Bank ReconciliationP3
We follow nine steps in preparing the bank reconciliation.
Adjusting entries are recorded for the reconciling items on the book side of the reconciliation.
Bank ReconciliationP3
Only the items reconciling the book balance require adjustment.
Bank Rec ExamplesStudy Example: pg. 349
P8-5A (pg. 366)
P8-5B (pg. 369)
Unit 3: Day 2Fraud & Cash Controls
Bank Reconciliation: Group Exercise
• In groups of 2 or 3• Prepare the bank rec• Prepare the journal entries
Fraud
• Fraud – dishonest act by an employee that results in personal benefit to the employee at a cost to the employer
• Time• Assets
Opportunity
Pressure Rationalization
Fraud & Internal ControlChapter 7
Fraud
• Fraud – dishonest act by an employee that results in personal benefit to the employee at a cost to the employer
• Time• Assets
Opportunity
Pressure Rationalization
OpportunityInternal Control processes can limit this.
1. Protect assets2. Ensure reliable accounting3. Promote efficient operations4. Create culture of compliance
Increasing Internal Controls, decreases opportunity for fraud.
However, the cost/benefit principle has to be held in check. We don’t use the same safeguards over McDonald’s French Fries as we would over the gold at Fort Knox.
Opportunity
Pressure Rationalization
PressureFinancial, family, society, and other stresses to succeed.
Ways to limit pressure?1. Set reasonable goals to measure success2. Provide a “living wage” or “fair” wages or a
“competitive compensation package”3. Offer benefits packages with counseling or
provide counseling for high-pressure jobs/circumstances
Opportunity
Pressure Rationalization
RationalizationEmployees justifying fraudulent behavior.
How do you limit rationalization?1. Hire ethical people who are less likely to
rationalize• Background checks• Personality screening• Checking references
2. Create a culture of compliance (through enforcement or loyalty)
Opportunity
Pressure Rationalization
Opportunity
Pressure Rationalization
Misappropriation• the intentional, illegal use of the
property or funds of another person for one's own use or other unauthorized purpose
Embezzlement• the act of dishonestly
appropriating or secreting assets by one or more individuals to whom such assets have been entrusted
Pre-LectureWhat frauds were you able to find during your search?
Please turn in your articles and paragraphs.
Electronic Fraud
• Identity theft• Fake companies• Fake documents• Fake sales/shipments
Segregation of Duties
One of the most powerful ways to limit opportunity…1. Different people do different jobs within related activities2. The responsibility for the record keeping of an asset should be
separate from the physical custody of the asset
Segregation of Duties
1. Segregate related activities2. Segregate Record Keeping from Physical Custody3. Use pre-numbered documents & account for all documents4. Establish and use physical control procedures (i.e. cameras, locked
cabinets, alarms, etc.)5. Independent verification
Independent Verification
1. Surprise!2. Independent employee – limit collusion
• Collusion – two people working together can committee misappropriation/fraud
3. Report up the chain4. Internal auditors
Human Resource Controls
• Bond employees who handle cash• Rotate employee duties and force mandatory vacations• Hiring – due diligence on background checks
Ethics in the Workplace: Does our workplace culture control stealing time?
click here for video link
PRINCIPLES OF INTERNAL CONTROL
READ PAGES 330-334 TWO TIMES!!!
Establish ResponsibilityMaintain Adequate RecordsInsure AssetsBond EmployeesSeparation of Record Keeping from Custody of AssetsDivide Responsibility of Related TransactionsTechnological Controls (passwords, timer logs)Regular AND Independent Reviews
BANK REC: TRY IT IN GROUPS, NOT A QUIZ
Agenda: Day 31. Can you read a cash budget and
understand why they are important?
2. Managing and Recording Petty Cash.
3. Can you complete a Bank Rec and Journal Entries? (Final Example)
4. Chapter 9 Intro: Accounts Receivable
5. Write-offs - Direct Method
WHAT GETS STOLEN?
CONTROLLING CASH
1. Segregation of duties2. Bank reconciliation3. Physical security
Cash and “Cash Equivalents”
• Cash – currency, coins, checking accounts, savings accounts (time deposits)
• Cash Equivalents – short-term, highly liquid investments
• T-Bills• Money Market Funds
Cash Management: Beyond Protecting Cash
Cash management is efficient management.
1. Increase accounts receivable turnover rate (speed up collections)
2. Keep inventory levels low (JIT)3. Efficient accounts payable processing4. Budget for capital
expenditures/improvements5. Invest idle cash
Cash Budget
More effective cash management• Predict financing needs• Predict excess cash & timing of investments and capital purchases
Sample Problem:
INTERNAL CONTROL
Do internal control systems….1. …eliminate the need for audits?2. …guarantee a positive return to
investors?3. …require a computer?4. …only work in large companies?5. …eliminate the company’s risk for
loss from fraud?6. …lower the company’s risk of loss
due to fraud?
What does it do?
What does it NOT do?
BRAINSTORM1. establish responsibilities2. maintain adequate records3. divide responsibilities for related
transactions4. technological controls
For each internal control area, come up with one example of how/why an “innocent” employee might violate a procedure. What is the big fuss about anyway?
Chapter 8: Petty Cash Demonstration
1. Fund is set up with $150.2. Pay window washer $7.00 from petty cash box.3. Pay customer $2.00 for money lost in Coke machine.4. Pay for $45.00 newspaper advertising.5. Replenish Petty Cash fund.6. Increase balance in Petty Cash fund to $200.
2 Issues in Accounts Receivable
1. Recognition• When revenue is recognized• Collection is probable• Amount can be determined
2. Valuation• Direct Write-Off Method• Allowance Method
Accounts Receivable
• amounts customers owe on account.• result from the sale of goods and services (often called trade
receivables).• expected to be collected within 30 to 60 days.• usually the most significant type of claim held by a company.
Valuing Accounts
• Determining the amount of accounts receivable to report is difficult because some receivables will become uncollectible.
• This creates bad debts expense – a normal and necessary risk of doing business on a credit basis.
Two methods are used in accounting for uncollectible accounts:1. Direct Write-off Method (pg 366)2. Allowance Method (367-372)
Direct Write-off Method
Using the direct write-off method, entries to record write-offs are often made in a period following sales rather than in the period in which the sales were made. Therefore, there is no matching of expenses with the revenue the expenses help to produce.
Direct Write-off Method***don’t write this down***
Strengths:• Bad debts expense will show
only actual losses from uncollectibles.
WEAKNESSES• Bad debts expense is often recorded in a
period different from that in which the revenue was recorded.
• Under this method, no attempt is made to:
• match bad debts expense to sales revenue in the income statement.
• show accounts receivable in the balance sheet at the amount actually expected to be received; and
• Use of the direct write-off method can reduce the usefulness of both the income statement and balance sheet.
• Unless bad debt losses are insignificant, the direct write-off method is not acceptable for financial reporting purposes.
Direct Write-off Example***don’t write this down***
When a specific account is determined to be uncollectible, the loss is charged to Bad Debts Expense.
Warden Co. writes off A. Mason’s $200 balance as uncollectible on December 12. The entry is: Dec. 12 Bad Debts Expense 200
Accounts Receivable—A. Mason 200
<To record write-off of A. Mason account>
Unit 3: Day 4• Allowance Method(s)
• Journal Entries• Estimation Methods
1. Percentage of Sales2. Percentage of Receivables3. Aging of Receivables
• Notes Receivable• Maturity Date• Calculate Interest• Journal Entries
Chapter 9
Allowance Method(s)• The allowance method of accounting for bad debts involves
estimating uncollectible accounts at the end of each period.• It provides better matching of expenses and revenues on the
income statement and ensures that receivables are stated at their net (cash) realizable value on the balance sheet.
• Net (cash) realizable value is the net amount of cash expected to be received. It excludes amounts that the company estimates it will not collect.
• Receivables are therefore reduced by estimated uncollectible amounts on the balance sheet through use of the allowance method.
• The allowance method is required for financial reporting purposes when bad debts are material.
Allowance Method(s)
Three essential features of the allowance method are:1. Companies estimated uncollectible accounts receivable and
match them against revenues in the same accounting period in which the revenues are recorded.
2. Companies record estimated uncollectibles as an increase (a debit) to Bad Debts Expense and an increase (a credit) to Allowance for Doubtful Accounts (a contra asset account) through an adjusting entry at the end of each period.
3. Companies debit actual uncollectibles to Allowance for Doubtful Accounts and credit them to Accounts Receivable at the time the specific account is written off as uncollectible.
Allowance Method: 3 Entries
Entry #1: Recording Estimated Uncollectibles• Allowance for Doubtful Accounts shows the estimated amount of
claims on customers that are expected to become uncollectible in the future.
• The credit balance in the allowance account will absorb the specific write-offs when they occur.
• Allowance for Doubtful Accounts is not closed at the end of the fiscal year.
• Bad Debts Expense is reported in the income statement as an operating expense (usually a selling expense).
Allowance Method: 3 Entries
Entry #2: Recording the Write-Off• Each write-off should be approved in writing by authorized
management personnel.• Under the allowance method, every bad debt write-off is debited to
the allowance account (not to Bad Debt Expense) and credited to the appropriate Account Receivable.
• A write-off affects only balance sheet accounts. Cash realizable value in the balance sheet, therefore, remains the same.
Allowance Method: 3 Entries
Entry #3: Recovery of an Uncollectible Account• When a customer pays after the account has been written off:
1. The collection is journalized in the usual manner.2. The entry made in writing off the account is reversed to reinstate the
customer’s account.
• The recovery of a bad debt, like the write-off of a bad debt, affects only balance sheet accounts.
3 ALLOWANCE METHODS
• Income Statement1. Percentage of Credit Sales
• Balance Sheet2. Percentage of Receivables3. Aging of Receivables
1st Estimation Method: Income StatementPercentage of Credit Sales
• The focus is on credit sales because cash sales don’t produce bad debts.
• When using this method, the estimated bad debts is the number used in the adjusting entry.
Example: E9-4 (p. 400)
Answers: Exercise 9-4
Dec. 31 Bad Debts Expense 4,875
Allowance for Doubtful Accounts 4,875 To record estimated bad debts expense
(.005 x $975,000).
Feb. 1 Allowance for Doubtful Accounts 580
Accounts Receivable—P. Park 580
To write off an account.
June 5 Accounts Receivable—P. Park 580
Allowance for Doubtful Accounts 580 To reinstate an account.
June 5 Cash 580
Accounts Receivable—P. Park 580
To record cash received on account.
2nd Estimation Method: Balance SheetPercentage of Outstanding Receivables• Management establishes a percentage relationship (based on past
experience) between the amount of receivables and expected losses from uncollectible accounts.
• The % estimates the required ending balance in Allowance for Doubtful Accounts at the balance sheet date.
• The bad debts expense adjusting entry is the difference between the required balance and the existing balance in the allowance account.
Example: E9-5 (p. 384)
Answers Exercise 9-5
3rd Estimation Method: Balance SheetAging of Outstanding Receivables• SAME JOURNAL ENTRIES AND CONCEPT AS % of RECEIVABLES• Companies prepare a schedule in which customer balances are
classified by the length of time they have been unpaid.• Aging schedule (aging the accounts receivable) – emphasis on time.• The schedule estimates the required ending balance in Allowance for
Doubtful Accounts at the balance sheet date.• The bad debts expense adjusting entry is the difference between the
required balance and the existing balance in the allowance account.
Balance Sheet / % of ReceivablesEstimate Allowance for Uncollectables
Remember! This is NOT the amount used in the adjusting journal entry.
This is the ENDING BALANCE for the
allowance account!
AGING OF RECEIVABLES: Exactly like % of Receivable, but multiple % are given according to the due date of the receivablesP9-3A (pg 402)
You Try It:P9-2A
With Partner
To Turn In
P9-3A
NOTES Receivable
• Promissory note – written promise to pay, legal document, dated with terms (interest and principle payments) defined, signed
• EXAMPLE: Check (example of a promissory note with no interest) • principal – amount to be paid• maker – the borrower• payee – the lender (who will receive the payment)
• Calculate maturity date• calculate days!!
• Calculate interest• “I party”: I = P x aR x Ty
Interest = Principal x annual Rate x Time in years
Determine Maturity Date
When the maturity date is stated in days, the time factor is frequently the number of days divided by 360. For example, the maturity date of a 60-day note dated July 17 is determined as follows:
Term of note 60 days
Days in July 31Date of note17Note’s days in July 14th
Days in August 31Plus note’s days in July + 14Note’s days to the end of August (31+14=45) 45Maturity date, (60-45=15) September 15th
I = P x aR X Ty
Interest = Principal x annual Rate x Time in years
This is the easy way to remember the formula for computing simple interest. PAY ATTENTION TO PARTIAL YEARS!
Compute Interest: Examples
Unit 3: Day 5• 2 Quick Entries• Notes Receivable Journal Entries• Receivables Journal Entry Problem• Intro to Chapter 10------------------------------------------------• Chapter 10 – Depreciation
• Straight Line• DDB• Units of Production
• Disposals of Assets
Plant Assets
Two Quick Pieces of Content
#1 Journal Entry for Credit Card SalesYour company sells an item costing $475 for $1,000 (plus sales tax 9.75%). The customer pays with a credit card. VISA collects the payment and deducts a 1.5% fee.
July 3 Cash 1,081.04
Credit Card Expense 16.46
Sales 1,000.00
Sales Tax Payable 97.50
3 Cost of Goods Sold 475.00
Merchandising Inventory 475.00
#2 Adjusting Journal Entry for InterestA company borrows $1,000 on Dec. 10th as a 15% 60-day. What journal entry is required on Dec 31st?
AJE
Dec 31 Interest Expense 8.75
Interest Payable 8.75
(I = 1000 x 0.15 x 21/360)
Journal Entries for Notes Receivable1 Notes Receivable 1,000
Sales 1,000
<sold goods & established note instead of “on account” – 12%, 90-day>
1b Notes Receivable 1,000
Accounts Receivable 1,000
<convert an accounts receivable into a note, 2/10, n30… interest/note starts on day 31>
1c Cash 200
Notes Receivable 800
Accounts Receivable 1,000
<partial payment, convert an accounts receivable into a note, 2/10, n30… interest/note starts on day 31>
Journal Entries for Notes Receivable1 Notes Receivable 1,000
Sales 1,000
<sold goods & established note instead of “on account” – 12%, 90-day>
2a Cash 1,030
Notes Receivable 1,000
Interest Revenue 30
<“honored note” - received payment on due date, no interest accrual>
3 Accounts receivable 1,030
Notes Receivable 1,000
Interest Revenue 30
<“dishonored note” – unable or refuses to pay>
Adjusting Journal Entries
4 Interest Receivable 10
Interest Revenue 10
<accrue interest - if the note does not mature at the end of the period, you MUST recognize interest revenue for the time that has passed>
2b Cash 1,030
Notes Receivable 1,000
Interest Receivable 10
Interest Revenue 20
<“honored note” – received payment on due date, after interest accrual>
Example Problem: E9-10 & E9-11 Change to 45-day note
Change to 45-day note
Financial Statement Presentation
BALANCE SHEET• Each of the major types of receivables should
be identified in the balance sheet or in the notes to the financial statements.
• Short-term receivables are reported in the current assets section below short-term investments.
• Both the gross amount of receivables and the allowance for doubtful accounts should be reported.
INCOME STATEMENT
• Bad debts expense is reported under “Selling expenses” in the operating expenses section of the income statement.
• Interest revenue is shown under “Other revenues and gains” in the non-operating section of the income statement.
FOOTNOTES - Significant risk of uncollectible accounts or other problems with receivables are required to be discussed in the notes to the financial statements.
Chapter 9 Demonstration Problem: pg 394 – 396
This is a VERY GOOD study problem. The problem and solutions are available. The AJE for bad debts is calculated 3 different ways. Notes receivable entries are included. Work the problem, check your answers. Make sure you understand the whole process!
Together in Class:P9-4B (2014 Only)
Depreciable Assets
…(1) tangible, (2) long-lived, (3) finite useful service life and (4) may or may not have an estimated residual salvage value at the end of its useful service life.
Depreciation applies to three classes of plant assets:1. Land improvements2. Buildings3. Equipment
Land is not a depreciable asset.
Depreciation
the process of allocating to expense the cost of a plant asset over its useful (service) life in a rational and systemic manner.
Such cost allocation is designed to properly match expenses with revenues.
Depreciation
Depreciation is a cost allocation process not an asset valuation process.
The book value—cost less accumulated depreciation—of a plant asset may differ significantly from its fair value.
Non-cash transaction. Doesn’t build a replacement fund.
• Balance Sheet: accumulated depreciation, which is reported as a deduction from plant assets.
• Income Statement: depreciation expense.
Depreciation3 METHODS:
1. Straight-Line 2. Units-of-Production3. Declining-Balance (Usually Double-Declining)
3 Depreciation Methods
Depreciation Methods
• GAAP allows a company to choose which method they use
• Once a method is chosen, it should be used consistently
Other Equivalent Terms
Depreciation in Plant Assets = Depletion in Natural ResourcesDepreciation in Plant Assets = Amortization in Intangible Assets
*depletion uses units-of-production*amortization uses straight-line
Key Information Required
BREAK
1. Chapter 9 Quiz2. CAT from Chapter 93. Depreciation Exercise4. Valuation of Assets (what is included in cost?)
Review CAT: Notes Receivable
CAT AnswersA 8/9 800B 10/12 875C 7/11 200
Asset Valuation:
What is Cost?
Capital Expenditures
Capital expenditures – costs that are not expensed immediately
Cost Principle – PP&E is recorded at cost
Cost include all expenditures necessary to acquire and to get an asset ready for its intended use.
PP&E Management:(1) keep assets in good operating
condition, (2) replace worn-out or outdated
assets, and (3) expand its productive assets as
needed.
AcquisitionCost
Acquisition cost excludes financing charges and
cash discounts
Acquisition cost excludes financing charges and
cash discounts
All expenditures needed to
prepare the asset for its intended
use
All expenditures needed to
prepare the asset for its intended
use
Purchaseprice
Purchaseprice
Cost Determination
Cost Basis
• Cash Equivalent Price - Cost when noncash assets are used in payment (equal to the fair value of the asset given up or the fair value of the asset received, whichever is more clearly determinable).
• Once cost is established, it becomes the basis of accounting for the plant asset over its useful life.
LAND
Asset (PP&E), DR, BS, P
The cost of land includes: 1. The cash purchase price2. Closing costs such as title and attorney’s fees3. Real estate brokers’ commissions4. Accrued property taxes and other liens on the land assumed by the purchaser
All necessary costs incurred in making land ready for its intended use increase (debit) the Land account.
Land is not “depreciated,” but it can be improved upon (developed).
Land is not depreciable.Land is not depreciable.
Purchaseprice
Purchaseprice
Real estatecommissionsReal estate
commissions
Title insurance premiumsTitle insurance premiums
Delinquenttaxes
Delinquenttaxes
Surveyingfees
Surveyingfees
Title search and transfer feesTitle search and transfer fees
Land
LAND IMPROVEMENTS
Asset (PP&E), DR, BS, P• structural additions made to land (i.e. driveways, parking lots, fences,
landscaping, and underground sprinklers).
The cost includes all expenditures necessary to make the improvements ready for their intended use.
The cost of a new company parking lot includes the amount paid for paving, fencing, and lighting.
The total of all these costs would be debited to Land Improvements.
Companies expense (depreciate) their costs over their useful lives.
Land Improvements
Parking lots, driveways, fences, walks, shrubs, and lighting systems.
Parking lots, driveways, fences, walks, shrubs, and lighting systems.
Depreciateover useful life of improvements.
Depreciateover useful life of improvements.
Cost of purchase or construction
Cost of purchase or construction
Brokeragefees
Brokeragefees
TaxesTaxes
Title feesTitle fees
Attorney feesAttorney fees
Buildings
EQUIPMENT
Assets used in operations, such as office furniture, factory machinery, delivery trucks, and airplanes.
The cost of equipment consists of the cash purchase price, sales taxes, freight charges, and insurance during transit paid by the purchaser, as well as expenditures required in assembling, installing, and testing the unit.
Two criteria apply in determining the cost of equipment:(1) The frequency of the cost - one time or recurring(2) The benefit period - the life of the asset or one year.
Purchaseprice
Purchaseprice
Installing,assembling, and
testing
Installing,assembling, and
testing
Insurance whilein transit
Insurance whilein transit
TaxesTaxes
Transportationcharges
Transportationcharges
Machinery and Equipment
Example
To illustrate, assume that Lenard Company purchases a delivery truck at a cash price of $22,000. Related expenditures are for sales taxes $1,320, painting and lettering $500, motor vehicle license $80, and a three-year accident insurance policy $1,600. The cost of the motor vehicle license is treated as an expense, and the cost of an insurance policy is considered a prepaid asset. •
1 Equipment 23,820
Misc Expense 80
Prepaid Insurance 1600
Cash 25,500
E10-2: Cost of Assets
E10-3: Acquisition Cost Allocation
Apiary Example:
On Your Own
Calculate depreciation on your own.Example for students to work in class or as an entry ticket for the next class.
(ignore April 1, assume purchased at beginning of the year)
1. Under the straight-line method, what was the balance of accumulated depreciation in 2014?
2. Using the Double-Declining Balance Method, What was the book value of the asset at the end of the second year?
3. How much depreciation expense would have been recorded in 2014 if the company used the units of production method?
Total cost,including
exploration anddevelopment,is charged to
depletion expenseover periods
benefited.
Extracted fromthe natural
environmentand reported
at cost lessaccumulated
depletion.
Natural Resources
Examples: oil, coal, goldExamples: oil, coal, gold
Exactly Like Units-of-
Production Depreciation
Cost Determination and DepletionLet’s consider a mineral deposit with an estimated 250,000 tons of available ore. It is purchased for $500,000, and we expect zero salvage value.
Depletion of Natural ResourcesDepletion expense in the first year would be:
Balance Sheet presentation of natural resources:
Plant Assets Used in Extracting
Specialized plant assets may be required to extract the natural resource.
These assets are recorded in a separate account and depreciated.
Specialized plant assets may be required to extract the natural resource.
These assets are recorded in a separate account and depreciated.
Noncurrent assetswithout physical
substance.
Noncurrent assetswithout physical
substance.
Useful life isoften difficultto determine.
Useful life isoften difficultto determine.
Usually acquired for operational
use.
Usually acquired for operational
use.
IntangibleAssets
IntangibleAssets
Often provideexclusive rights
or privileges.
Often provideexclusive rights
or privileges.
Intangible Assets
Cost Determination and Amortization
oPatentsoCopyrightsoLeaseholdsoLeasehold ImprovementsoFranchises and LicensesoGoodwilloTrademarks and Trade NamesoOther Intangibles
Record at current cash equivalent cost, including purchase price, legal fees, and
filing fees.
E10-11: Asset Revisions
Sample CompanyBalance Sheet
As of December 31, 201x
AssetsCurrent Assets Cash $78,000 Cash Equivalents 2,000 Accounts Receivable $21,000 Less: Allowance for Doubtful Accounts 1,000 Net Realizable Accounts Receivable 20,000 Merchandise Inventory 50,000 Prepaid Insurance 5,000 Supplies 5,000 Notes Receivable 40,000 Total Current Assets $100,000Long-term Investments Land held for expansion 40,000 Investment in Long-Term Bonds 10,000 50,000Plant Assets Equipment 35,000 Less: Accumulated Depreciation-Equipment 5,000 30,000 Building 86,000 Less: Accumulated Depreciation-Building 6,000 80,000 Land 40,000 Total Plant Assets 150,000Intangible Assets Copyright 2,000 Patent 3,000 5,000Total Assets $305,000
Liabilities & Owner’s Equity
Exam 3: CompositionGood Luck!
Chapter 8: Cash & Internal Control
Chapter 9: Receivables
Chapter 10: Plant Assets - Cost, Depreciation & Selling