Question

6) Know what adjustments are necessary during consolidations for PP&E accounts?

6) Know what adjustments are necessary during consolidations for PP&E accounts?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer)

Adjustments that are necessary during consolidation of PP&E accounts:

The PP&E a/c initially measured at historic value i.e actual cost that the asset is bought and other costs like registration etc spent at the time of purchase of asset.There onward every year there will be decline in value in form of depreciation due to the use of asset where land is an exemption for it and any additions during the year will be added and such value is known as book value.It can be simply explained by the following formula:

BOOK VALUE OF PP&E=GROSS PP&E+ADDITIONS-ACCUMULATED DEPRECIATION.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What are the breach in the ethical principles if the necessary adjustments are not done?
What are the breach in the ethical principles if the necessary adjustments are not done?
1. A professor wants to know how effective their teaching style is to make adjustments if...
1. A professor wants to know how effective their teaching style is to make adjustments if necessary, so they administered a pretest of class content on the first day of class, then the same test again during midterms. The test was out of 15 points, and the scores from both the pretest and posttest are in the table below. Is there evidence to suggest that their teaching style is making a difference in students’ understanding of the class content? α...
Paul is making the annual accounts receivable and allowance for doubtful accounts adjustments at year end....
Paul is making the annual accounts receivable and allowance for doubtful accounts adjustments at year end. The proportion of uncollectible accounts is estimated during the year based on past experience which indicates 1.5% of net credit sales will be uncollectible. Total sales for the year were $2 million, of which 10% were cash transactions. Paul determines that a $10,000 account from Rent, Inc is uncollectible and will write off this account before making year-end adjustments. Below are the unadjusted account...
Is the restoration of an impairment loss for PP&E allowed for an asset held for use?...
Is the restoration of an impairment loss for PP&E allowed for an asset held for use? What about if the asset is held for disposal?
Exercise 7-14 (Algo) Calculate uncollectible accounts using the aging method; record adjustments [LO7-5, 7-6] Zuo Software...
Exercise 7-14 (Algo) Calculate uncollectible accounts using the aging method; record adjustments [LO7-5, 7-6] Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $255,000; estimated uncollectible = 20%. Accounts 1–30 days past due = $31,900; estimated uncollectible = 23%. Accounts 31–90 days past due = $25,500; estimated uncollectible = 26% Accounts more than 90 days past due = $19,100; estimated uncollectible = 30%. At 12/31/2021,...
Exercise 7-14 (Algo) Calculate uncollectible accounts using the aging method; record adjustments [LO7-5, 7-6] Zuo Software...
Exercise 7-14 (Algo) Calculate uncollectible accounts using the aging method; record adjustments [LO7-5, 7-6] Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $333,000; estimated uncollectible = 10%. Accounts 1–30 days past due = $41,600; estimated uncollectible = 14%. Accounts 31–90 days past due = $33,300; estimated uncollectible = 17% Accounts more than 90 days past due = $25,000; estimated uncollectible = 21%. At 12/31/2021,...
Why is an Allowance for Uncollectible Accounts necessary? A) When recording uncollectible accounts expense, you don’t...
Why is an Allowance for Uncollectible Accounts necessary? A) When recording uncollectible accounts expense, you don’t know which specific accounts won’t pay. B) Uncollectible accounts that are written off must be accumulated in a separate account. C) A liability results when a credit sale is made. D) Management needs to accumulate all the credit losses over the years.
Which of the following types of adjustments to the government fund financial statements are necessary to...
Which of the following types of adjustments to the government fund financial statements are necessary to prepare the governmental activities portion of the government-wide financial statements? A)Capital assets and related depreciation must be recorded B) Proceeds from issuing long-term debt must be recorded as liabilities C) Expenses must be recognized when incurred so noncurrent liabilities from current transactions and events must be reported D) Revenues must be recognized on the accrual basis of accounting so the governmental fund “measurable and...
True/False 1.___ Almost all property, plant, and equipment (PP&E) is depreciated, which means that its cost...
True/False 1.___ Almost all property, plant, and equipment (PP&E) is depreciated, which means that its cost is spread over its useful life. 2. ____ PP&E is a long-term asset. 3. ____ If PP&E is found to be permanently impaired, a loss must be recorded. 4. ____ If an expenditure increases the useful life of an asset, it should be capitalized, not expensed. 5. ____ It does not matter how a company divides a basket purchase since all the assets will...
Assessing Financial Statement Effects of Adjustments For each of the following separate situations, prepare the necessary...
Assessing Financial Statement Effects of Adjustments For each of the following separate situations, prepare the necessary accounting adjustments using the financial statement effects template.   (a) Unrecorded depreciation on equipment is $3,050. (b) The Supplies account has an unadjusted balance of $14,950. Supplies still available at the end of the period total $5,500. (c) On the date for preparing financial statements, an estimated utilities expense of $1,950 has been incurred, but no utility bill has yet been received or paid. (d)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT