60.1K

Verified Solution

Link Copied!

Properly calculate the amount of $\frac{N}{R}$ interest to accrue at year$-$end when the maturity date is after year$-$end.

Identify, describe, and give examples of each of the $3$ classifications of long$-$term assets

Properly apply the rule to calculate the amount to capitalize as the acquisition cost for each type of LT asset.

Properly allocate a "lump$-$sum" plant asset purchase price to each asset acquired based on relative fair market value measures.

Describe what the process of depreciation accomplishes as well as what it does not accomplish.

Define and properly use measures of salvage value and useful life in the straight line formula to calculate depreciation expense.

Properly calculate accumulated depreciation and the book value of a plant asset over the useful life of the asset.

Calculate SL depreciation expense for a plant asset for the year in which a change is made to the estimated total useful life, and$/$or to the estimated salvage value.

Calculate gain or loss on disposal of a plant asset.

NOTE: depreciation questions will involve both whole years and partial years!

Calculate the depletion per unit rate for a natural resource given all the necessary information.

Explain the $3$ defining time aspects of a liability.

Properly classify liability amounts as either current or noncurrent.

Describe, and give examples of$,$ known liabilities and estimated liabilities.

Describe what is meant by "gross pay" and "net pay" amounts in payroll accounting.

Identify the $2$ elements of FICA taxes.

Properly calculate total interest on a N$/$P when the period is defined in: days, months, and years.

Properly calculate the amount of $\frac{N}{P}$ interest to accrue at year$-$end when the maturity date is after year$-$end.

Explain what a warranty is and describe the proper accounting treatment for it over the life of the warranty.

Calculate warranty expense based on a percentage of sales approach.

Explain what a "contingent liability" is and describe the proper accounting treatment when the likelihood of the associated future event occurring is either probable, possible, or remote.

Answer & Explanation Solved by verified expert

See Answer