Unit 11: Plant Assets and Intangible Assets

Learning Objectives

By the end of this section, you will be able to:

    describe the accounting and reporting of plant and intangible assets and natural resources.

  • Prepare entries for cash and lump-sum purchases of property, plant and equipment.
  • Define “depreciation” as the term is used by accountants.
  • Identify factors that affect the determination of service life.
  • Compute depreciation by using the following methods:
    1. Straight-line
    2. Units-of activity
    3. Declining balance
  • Compute book value.
  • Journalize entries for disposal of property, plant and equipment assets for the following circumstances:
    2. Sale of the asset
    3. Trade-in of similar assets
  • Define “depletion” as the term is used by accountants.
  • Compute depletion for a given cost, residual value, and estimated output.
  • Journalize adjusting entries for the recording of:
    2. Depletion
  • Identify and describe various types of intangible assets.
  • Calculate and record amortization of intangible assets