Study
Guide
19
Name Perfect
Score
Your
Score
Identifying Accounting Terms 14 Pts.
Analyzing Plant Asset and Intangible Asset Transactions 20 Pts.
Analyzing Plant Assets, Depreciation, Intangible Assets, and Amortization 14 Pts.
Total 48 Pts.
Part One—Identifying Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Answers
1.
2.
6.
7.
8.
9.
10.
Column I
A. amortization
B. accelerated depreciation
F. gain
G. gain on plant assets
H. intangible asset
I. loss
J. loss on plant assets
Column II
1. The ratio of the money earned on an investment relative
to the amount of the investment. (p. 584)
2. Land and anything attached to the land. (p. 587)
6. An increase in equity resulting from activity other than
selling goods or services. (p. 600)
7. An increase in equity that results when a plant asset is sold
for more than book value. (p. 600)
8. A decrease in equity resulting from activity other than
selling goods or services. (p. 601)
9. The decrease in equity that results when a plant asset is
sold for less than book value. (p. 601)
10. Any method of depreciation that records greater
depreciation expense in the early years and less depreciation
expense in the later years. (p. 603)
N
M
F
G
I
J
B
Part Two—Analyzing Plant Asset and Intangible Asset Transactions
Directions: Analyze each of the following transactions into debit and credit parts. Print letters
(A through L) in the proper Answers columns identifying the accounts to be debited and credited.
Answers
Account Titles Transactions Debit Credit
A. Accumulated Depreciation—
Office Equipment
1–2. Paid cash for new display case. (p. 585) 1. 2.
B. Accumulated Depreciation—
Store Equipment
3–4. Paid cash for a computer for the office
and a cash register for the store. (p. 586)
3. 4.
C. Amortization Expense 5–6. Paid cash for property taxes. (p. 587) 5. 6.
D. Cash 7–8. Recorded annual store equipment
depreciation. (p. 596)
7. 8.
E. Depreciation Expense—
Office Equipment
9–10. Received cash from sale of display case
for book value. (p. 598)
9. 10.
L
H, L
F
B, D
D
D
B
L
KD
Name Date Class
Part Three—Analyzing Plant Assets, Depreciation,
Intangible Assets, and Amortization
Directions: For each of the following items, select the choice that best completes
the statement. Print the letter identifying your choice in the Answers column.
1. Recording a plant asset at its original cost is an application of the concept (A) Going
Concern (B) Matching Expenses with Revenue (C) Objective Evidence (D) Historical Cost.
(p. 585)
5. The smallest unit of time used to calculate depreciation is (A) one month (B) half a year
(C) one year (D) none of these. (p. 591)
6. At any time, the accumulated depreciation for a plant asset owned by the company
reflects (A) depreciation expense for the current year (B) total depreciation expense since
the asset was purchased (C) next year’s estimated depreciation expense (D) total estimated
depreciation for the life of the asset. (p. 592)
7. When a plant asset is sold with no gain or loss recorded, (A) cash received equals the
book value of the asset (B) cash received is less than the book value of the asset (C) cash
received is more than the book value of the asset (D) none of these. (p. 598)
8. When a plant asset is sold and a gain is recorded, (A) cash received equals the book value
of the asset (B) cash received is less than the book value of the asset (C) cash received is
more than the book value of the asset (D) none of these. (p. 600)
9. When a plant asset is sold and a loss is recorded, (A) cash received equals the book value
of the asset (B) cash received is less than the book value of the asset (C) cash received is
more than the book value of the asset (D) none of these. (p. 601)
10. Charging more depreciation expense in the early years is an application of the concept of
(A) Adequate Disclosure (B) Historical Cost (C) Matching Expenses with Revenue
Answers
1.
5.
6.
7.
8.
9.
10.
D
A
B
A
C
B
C
Across
5. An asset that does not have physical substance.
6. A decrease in equity resulting from activity other
than selling goods or services.
Down
1. All property not classified as real property.
2. An accounting form on which a business records
information about each plant asset.
1
5
6
2
3
4
1
5
6
2
3
4
P
E
R
S
O
NTI
A
LO
P
L
A
N
T
A
S
SS
Y
NG IBLEAS
A
S
SE
E
S
O
M
A
R
T
I
Z
Chapter 19 Accounting for Plant Assets, Depreciation, and Intangible Assets • 565
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Name Date Class
19-1 WORK TOGETHER, p. 588
Journalizing buying plant assets and paying property tax
19-1 ON YOUR OWN, p. 588
Journalizing buying plant assets and paying property tax
CASH PAYMENTS JOURNAL PAGE
1 2 3 4 5
DATE ACCOUNT TITLE CK.
NO.
POST.
REF.
GENERAL ACCOUNTS
PAYABLE
DEBIT
PURCHASES
DISCOUNT
CREDIT
CASH
CREDIT
DEBIT CREDIT
1 1
2 2
3 3
7 7
CASH PAYMENTS JOURNAL PAGE
1 2 3 4 5
DATE ACCOUNT TITLE CK.
NO.
POST.
REF.
GENERAL ACCOUNTS
PAYABLE
DEBIT
PURCHASES
DISCOUNT
CREDIT
CASH
CREDIT
DEBIT CREDIT
1 1
2 2
1
20–
Jan. 3Store Equipment C241 8 0 0 00 8 0 0 00
5Office Equipment C244 5 0 0 00 5 0 0 00
Feb. 26 Property Tax Expense C268 4 0 0 0 00 4 0 0 0 00
3
20–
Feb. 2Office Equipment C335 1 2 0 0 00 1 2 0 0 00
5Store Equipment C340 6 0 0 00 6 0 0 00
23148_ch19_hr_561-604.indd 565 1/18/18 1:37 AM
19-2 WORK TOGETHER, p. 593
Calculating depreciation
Plant asset: Estimated salvage value:
Depreciation method: Estimated useful life:
Original cost: Date bought:
Year Beginning Book
Value
Annual
Depreciation
Accumulated
Depreciation
Ending Book
Value
Plant asset: Estimated salvage value:
Depreciation method: Estimated useful life:
Original cost: Date bought:
Year Beginning Book
Value
Annual
Depreciation
Accumulated
Depreciation
Ending Book
Value
DEPRECIATION TABLE
DEPRECIATION TABLE
Display Case
Straight-line
Jan. 4
8 years
$200.00
$4,040.00
1 $4,040.00 $480.00 $ 480.00 $3,560.00
2 3,560.00 480.00 960.00 3,080.00
3 3,080.00 480.00 1,440.00 2,600.00
Work Station
Straight-line
Sept. 20
5
$0.00
$4,800.00
1$4,800.00 $240.00 $ 240.00 $4,560.00
24,560.00 960.00 1,200.00 3,600.00
33,600.00 960.00 2,160.00 2,640.00
Name Date Class
19-2 ON YOUR OWN, p. 593
Calculating depreciation
Plant asset: Estimated salvage value:
Depreciation method: Estimated useful life:
Original cost: Date bought:
Year Beginning Book
Value
Annual
Depreciation
Accumulated
Depreciation
Ending Book
Value
Plant asset: Estimated salvage value:
Depreciation method: Estimated useful life:
Original cost: Date bought:
Year Beginning Book
Value
Annual
Depreciation
Accumulated
Depreciation
Ending Book
Value
DEPRECIATION TABLE
DEPRECIATION TABLE
Stitching Machine
Straight-line
Jan. 5
6 years
$340.00
$2,500.00
1 $2,500.00 $360.00 $ 360.00 $2,140.00
2 2,140.00 360.00 720.00 1,780.00
Notebook Computer
Straight-line
Jun. 13
4 years
$150.00
$2,070.00
1 $2,070.00 $280.00 $ 280.00 $1,790.00
PLANT ASSET RECORD No. General Ledger Account No.
Description General Ledger Account
Date Serial
Bought Number Original Cost
Estimated
Estimated Salvage Depreciation
Useful Life Value Method
Disposed of: Discarded Sold Traded
Date Disposal Amount
Year Annual Depreciation Expense Accumulated Depreciation Ending Book Value
19-3 WORK TOGETHER, p. 597
Journalizing depreciation
1., 2.
Display Case Store Equipment
January 4, 20X1
8 years
374-02 $4,040.00
Straight-line$200.00
105 1220
PLANT ASSET RECORD No. General Ledger Account No.
Description General Ledger Account
Date Serial
Bought Number Original Cost
Estimated
Estimated Salvage Depreciation
Useful Life Value Method
19-3 WORK TOGETHER (continued)
Work Station Ofce Equipment
September 20, 20X1
5 years
X56Y17 $4,800.00
Straight-line$0.00
106 1210
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
19-3 WORK TOGETHER (concluded)
3.
23
PLANT ASSET RECORD No. General Ledger Account No.
Description General Ledger Account
Date Serial
Bought Number Original Cost
Estimated
Estimated Salvage Depreciation
Useful Life Value Method
Name Date Class
19-3 ON YOUR OWN, p. 597
Journalizing depreciation
1., 2.
Stitching Machine Store Equipment
January 5, 20X1
6 years
GH-422-J $2,500.00
Straight-line
$340.00
276 1220
PLANT ASSET RECORD No. General Ledger Account No.
Description General Ledger Account
Disposed of: Discarded Sold Traded
Date Disposal Amount
Year Annual Depreciation Expense Accumulated Depreciation Ending Book Value
Continue record on back of card
19-3 ON YOUR OWN (continued)
Notebook Computer Ofce Equipment
277 1210
20X1 $280.00 $ 280.00 $1,790.00
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
Name Date Class
19-3 ON YOUR OWN (concluded)
3.
20
Adjusting Entries
20X3
Dec. 31 Depreciation Exp.—Store Equipment 15 7 7 5 00
19-4 WORK TOGETHER, p. 602
1.
PLANT ASSET RECORD No. General Ledger Account No.
Description General Ledger Account
Date Serial
Bought Number Original Cost
Estimated
Estimated Salvage Depreciation
Useful Life Value Method
Disposed of: Discarded Sold Traded
Date Disposal Amount
Year Annual Depreciation Expense Accumulated Depreciation Ending Book Value
Copy Machine Ofce Equipment
April 14, 20X1
March 23, 20X4 $2,500.00
4 years
45BG545 $9,000.00
Straight-line$1,00.00
✔
8252 1220
20X1 $1,500.00 $1,500.00 $7,500.00
Name Date Class
19-4 WORK TOGETHER (continued)
PLANT ASSET RECORD No. General Ledger Account No.
Description General Ledger Account
Date Serial
Bought Number Original Cost
Estimated
Estimated Salvage Depreciation
Useful Life Value Method
Disposed of: Discarded Sold Traded
Date Disposal Amount
Year Annual Depreciation Expense Accumulated Depreciation Ending Book Value
File System Store Equipment
July 3, 20X1
August 21, 20X4 $1,200.00
6 years
NC6521 $2,000.00
Straight-line$200.00
✔
8260 1230
20×1 $150.00 $150.00 $1,850.00
576 • Working Papers
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
19-4 WORK TOGETHER (concluded)
2.
3.
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
CASH RECEIPTS JOURNAL PAGE
1234567
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
GENERAL ACCOUNTS
RECEIVABLE
CREDIT
SALES
CREDIT
SALES TAX
PAYABLE
CREDIT
SALES
DISCOUNT
DEBIT
CASH
DEBIT
DEBIT CREDIT
1 1
2 2
Recording the disposal of plant assets
TE
8
20X4
Mar.23 Depreciation Expense—Office Equipment M43 5 0 0 00
Accum. Depreciation—Office Equipment 5 0 0 00
17
20X4
Mar . 23 Accum. Depr.—Office Equipment R115 6 0 0 0 00 2 5 0 0 00
Loss on Plant Assets 5 0 0 00
23148_ch19_hr_561-604.indd 576 1/18/18 1:37 AM
PLANT ASSET RECORD No. General Ledger Account No.
Description General Ledger Account
Date Serial
Bought Number Original Cost
Estimated
Estimated Salvage Depreciation
Useful Life Value Method
Disposed of: Discarded Sold Traded
Date Disposal Amount
Year Annual Depreciation Expense Accumulated Depreciation Ending Book Value
Name Date Class
19-4 ON YOUR OWN, p. 602
1.
Display Shelves Store Equipment
July 14, 20X1
January 4, 20×4 $1,000.00
5 years
ZV3-175 $2,000.00
Straight-line
$200.00
✔
672 1220
PLANT ASSET RECORD No. General Ledger Account No.
Description General Ledger Account
Date Serial
Bought Number Original Cost
Estimated
Estimated Salvage Depreciation
Useful Life Value Method
Disposed of: Discarded Sold Traded
Date Disposal Amount
Year Annual Depreciation Expense Accumulated Depreciation Ending Book Value
19-4 ON YOUR OWN (continued)
Table Ofce Equipment
December 3, 20X1
March 21, 20X4 $850.00
3 years
68426KK $3,600.00
Straight-line
$0.00
✔
684 1210
20X1 $ 100.00 $ 100.00 $3,500.00
Chapter 19 Accounting for Plant Assets, Depreciation, and Intangible Assets • 579
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Name Date Class
19-4 ON YOUR OWN, p. 602
Recording the disposal of plant assets
2.
3.
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
CASH RECEIPTS JOURNAL PAGE
1 2 34567
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
GENERAL ACCOUNTS
RECEIVABLE
CREDIT
SALES
CREDIT
SALES TAX
PAYABLE
CREDIT
SALES
DISCOUNT
DEBIT
CASH
DEBIT
DEBIT CREDIT
1 1
10
20X4
Mar.21 Depreciation Expense—Office Equipment M71 3 0 0 00
Accum. Depreciation—Office Equipment 3 0 0 00
2
20X4
23148_ch19_hr_561-604.indd 579 1/18/18 1:37 AM
19-5 WORK TOGETHER, p. 606
Calculating depreciation using the double declining-balance depreciation method
Plant asset: Estimated salvage value:
Depreciation method: Estimated useful life:
Depreciation rate: Date bought:
Original cost:
Year Beginning Book
Value
Annual
Depreciation
Accumulated
Depreciation
Ending Book
Value
Plant asset: Estimated salvage value:
Depreciation method: Estimated useful life:
Depreciation rate: Date bought:
Original cost:
Year Beginning Book
Value
Annual
Depreciation
Accumulated
Depreciation
Ending Book
Value
DEPRECIATION TABLE
DEPRECIATION TABLE
1 $2,200.00 $880.00 $ 880.00 $1,320.00
2 1,320.00 528.00 1,408.00 792.00
Painting Machine
Ofce Computer
Double Declining-Balance
Double Declining-Balance
50%
40%
$27,000.00
$2,200.00
Jan. 4
Jan. 6
4 years
5 years
$1,000.00
$200.00
1 $27,000.00 $13,500.00 $13,500.00 $13,500.00