Fixed Assets Review

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Fixed Assets Review


Lecture number:
22
Pages:
2
Type:
Lecture Note
School:
Miami University, Oxford
Course:
Acc 221 - Intro to Financial Accounting
Edition:
1
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Unformatted text preview:

Lecture 22 Outline of Previous Lecture  Section 21: Fixed Assets  Fixed Assets o Other Names o Characteristics o Dollar value we put into assets o Operating costs and expenses o Grey area Outline of Current Lecture  Section 22: Fixed Assets Review  Fixed Assets o Dollar value we put into assets o Operating costs and expenses o Grey area Current Lecture  Section 21: Fixed Assets Review  Fixed Assets o Dollar value we put into the asset accounts (Appear on balance sheet)  Total amount of money paid to be able to put it into service  Purchase price ($30,000)  Sales tax ($2,000)  Service fees ($200) o Total amount to be able to put the capital asset into use: $32,200  Transaction  Dr. truck $32,200, Cr. cash o Operating costs and expenses (appear on income statement)  Expenses once capital asset is put into service (maintenance, ect.)  Requirement for insurance o Not a capital cost, reoccurring expense  Maintaining the vehicle  Oil change – maintaining the life – expense  Tire change – maintaining the life – expense  New engine, $5,000 to extend life extra 3 years – extending life of asset, considered capital asset o Dr. truck, cr. Cash o Grey area ACC 221 1st Edition



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