Answer:
1. Repainted the office building: This should be capitalized.
2. Added a new wing onto the office building: This should be capitalized.
3. Took their fleet of cars in for servicing (changing the oil, etc.).: This should be expensed.
5. Had an engine rebuilt in one of their fleet cars: This should be capitalized.
4. Added newer electronic locks on the doors in the production building: This should be expensed.
Explanation:
1. Repainted the office building: This should be capitalized. This is because repainting is a repair that will restore the physical structure of the office building and significantly improve it. Since it is a capital improvement cost, it should be capitalized and depreciated like other fixed assets.
2. Added a new wing onto the office building: This should be capitalized and depreciated like other fixed assets since it is a capital expenditure that significantly added to the structure of the office building.
3. Took their fleet of cars in for servicing (changing the oil, etc.).: This falls under repair and should be expensed.
4. Added newer electronic locks on the doors in the production building: This should be expensed. Cost of locks and keys are ordinary expenses that do not improve the physical structure of the production building.
5. Had an engine rebuilt in one of their fleet cars: This should be capitalized. It is a tangible improvement to the fleets of cars and this kind of costs fall under capital expenditures.
C. prototyping, does it makes sense now.
Answer:
B. One year or the operating cycle, whichever is longer.
Explanation:
Current Assets are assets that can be converted into cash within a year or an operating cycle whichever is longer.
Current Assets are presented first on a balance sheet and arranged in order of liquidity.
Examples of current assets are cash ,
cash equivalents , short-term investments, accounts receivable and stock inventory.
I hope my answer helps you
Answer:Worthy journal $
Date
March 14, 2022
Bad debt Dr 2600
Receivable Cr 2600
Narration. Record of receivables written off to income account on account becoming unrecoverable.
Explanation:
The direct method of written off bad debts do not make provision for estimate of receivables that are likely to go bad in which the estimate is recognised as debit to income statement and the corresponding credit entry is used to reduce the receivables, with adjustment been made at the year end for variances.
In the direct method the actual bad debts is debited in the income s statement and credited to the receivables accounts.
