Exercises E9-1, E9-7, E9-12, P9-7B E9-1 (A) The cost principle states that assets must be recorded at the cost at which they were acquired. Although plant assets can fluctuate in fair market value, their book value will remain consistent. Companies must compute the total deprecation of the asset and allocate it over the useful life of the asset. (B) 1) $5000-Land 2) $200- Factory Equipment/ insurance 3) $850- Delivery Equipment 4) $17,500-Land Improvements 5) $250-Delivery Equipment
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Exercises and Problems - Week Two ACC/291 University of Phoenix E9-1 A. In this scenario, with the cost principle, the purchase cost for the factory asset will have all bills necessary to get the asset and make it ready for its particular objective. B. 1. Property 2. Plant Machines 3. Delivery Machines 4. Land Renovations 5. Delivery Machines 6. Plant Machines 7. Prepaid Insurance 8. License Expenditure E9-7 A. 1. 2011: $3,500 2012:
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Acknowledgments ix Acknowledgments This book owes a great deal to the mental energy of several generations of scholars. As an undergraduate at the University of Cape Town, Francis Wilson made me aware of the importance of migrant labour and Robin Hallett inspired me, and a generation of students, to study the African past. At the School of Oriental and African Studies in London I was fortunate enough to have David Birmingham as a thesis supervisor. I hope that some of his knowledge and understanding
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