Lecture Accounting principles (11E): Chapter 10 - Coby Harmon

After completing this chapter you should be able to: Describe how the historical cost principle applies to plant assets, explain the concept of depreciation and how to compute it, explain how to account for the disposal of a plant asset,...and other contents.
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Lecture Accounting principles (11E): Chapter 10 - Coby HarmonPrepared byCoby HarmonUniversity of California, Santa BarbaraWestmont College10-110Plant Assets, NaturalResources, and IntangibleAssetsLearning ObjectivesAfter studying this chapter, you should be able to:[1] Describe how the historical cost principle applies to plant assets.[2] Explain the concept of depreciation and how to compute it.[3] Distinguish between revenue and capital expenditures, and explainthe entries for each.[4] Explain how to account for the disposal of a plant asset.[5] Compute periodic depletion of natural resources.[6] Explain the basic issues related to accounting for intangible assets.[7] Indicate how plant assets, natural resources, and intangible assetsare reported.10-2Preview of Chapter 10Accounting PrinciplesEleventh EditionWeygandt Kimmel Kieso10-3Plant AssetsPlant assets are resources that havephysical substance (a definite size and shape),are used in the operations of a business,are not intended for sale to customers,are expected to provide service to the company for anumber of years.Referred to as property, plant, and equipment; plant andequipment; and fixed assets.10-4LO 1 Describe how the cost principle applies to plant assets.Plant AssetsPlant assets are critical to a company’s successIllustration 10-110-5LO 1 Describe how the cost principle applies to plant assets.