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Seat Solution Orthopedic Seat Cushion
List Price: |
DescriptionSeat Solution Orthopedic Seat Cushion is designed to relieve nagging backaches, numbness, and discomfort while you sit. It has a special wedge shape with U Cutaway for your tailbone. Made from All New Material Consisting of 100% Polyurethane Foam... |
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Gourmet Classics Milk Truck Junior Chef Apron
List Price: |
DescriptionThe Junior Chef Blue Apron with milk truck insignia, by Gourmet Classics, is fun, playful and the perfect accessory for your little ones when helping in the kitchen or working on arts and crafts. Heavy weight apron is made of 100-percent cotton and features an adjustable d-ring, which allows you to create a custom fit... |
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Dog Blessed Ceramic Coffee Mug |
DescriptionProduct Description |
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Unfaithful [Original Motion Picture Soundtrack]
List Price: |
DescriptionNo Description Available.Genre: Soundtracks & ScoresMedia Format: Compact DiskRating: Release Date: 14-MAY-2002 |
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Drunk & Crazy Plus
List Price: |
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On The Can: Collector's Tin (3 CD Box Set)
Sale Price: $39.99 |
DescriptionOn The Can features 3 Larry the Cable Guy CDs together in a deluxe tin box! |
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Black & Decker ASI300 Air Station Inflator
List Price: |
DescriptionPowerful and portable, the Black & Decker ASI300 Air Station Inflator is the portable solution to household and on-the-go inflation needs. An illuminated pressure gauge gives you precise control, with an automatic shut off feature to make inflation easy... |
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Shoulder Dolly LD1000 2-Person Lifting and Moving System
List Price: |
DescriptionShoulder Dolly Light Duty gives you a hand in moving the heavy stuff--and reduces back, arm, and hand strain. You're looking at a 2-person harness, webbing and buckle system designed by a professional mover to ease the burden of lifting heavy and bulky objects... |
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Tricam FR110-2 Farm & Ranch 400-Pound Capacity Steel Utility Cart, Green
List Price: |
DescriptionThis steel utility cart is ideal for any garden or landscaping job. With folding, removable sides, you can quickly and easily convert from a utility cart to a flat-bed. The padded straight handle allows the cart to be easily pulled by hand... |
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The Milk Out
Sale Price: $1.99 |
Assets such as buildings, machinery, trucks, and land are called fixed assets. They are often designated on the balance sheet by the title, "Property, plant, and equipment."
Fixed assets are expected to be of use to the business for several years. When a fixed asset is acquired, it is recorded at cost in accordance with the fundamental accounting concept known as the cost concept.
The "cost" of a fixed asset includes all costs of acquiring and installing it to make it ready to use.
Bed Linens Company pays $100,000 for a piece of real property. It also pays $5,000 for brokerage, $6,000 for legal fees, and $10,000 to tear down the existing structures in order to make the land ready for its intended use. The real estate should be recorded in its books at $121,000.
In the case of machinery, transportation and installation costs are usually included. Bed Linens Company purchased a weaving machine paying $32,000. The company paid $1,000 in freight charges to transport it and$4,000 in installation charges. This machine should be entered in the accounts at $37,000.
If a business constructs a machine or building with its own personnel, all costs incurred in construction are included.
Bed Linens Company builds a new building for itself, using its own personnel. It spends $100,000 in materials, $300,000 in salaries and wages to persons engaged in the building's construction and $200,000 in other cost. This building should be entered in the accounts at $600,000.
When a new fixed asset is acquired and an old asset (i.e., a trade-in) is used as part payment, the fair market value of the trade-in is part of the cost of the new asset. Thus, if Bed Linens Company buys a new delivery truck for $10,000 cash plus an old delivery truck the fair market value of which is $3,000, the new truck should be recorded at $13,000.
If the allowance given for the trade-in differs from the actual value of the trade-in, then the actual market value of the new asset should be used as the cost of the new asset.
Suppose that Bed Linens Company pays $10,000 cash for a new delivery truck and receives an allowance of $1,700, the new truck can be purchased for $11,500 cash. Its cost should be recorded as $11,500.
Except in rare cases, land retains its value indefinitely. If Bed Linens Company purchases a piece of land on December 31, l995, at a cost of $100,000, it will be recorded at $100,000 on December 31, l995 and at $100,000 on December 31, 2010.
Assets other than land become useless at some point in time. They have a limited life. Accounting practice treats this process as occurring gradually, that is, a portion of the asset is considered used up in its year of its life, until finally it is completely used up.
Since accounting assumes that some portion of an asset is used up during each year of its life, a portion of the cost of the asset is treated as an expense during each year of its life.
For example, suppose a machine tool is purchased at a cost of $10,000 and its useful life is five years. It should be reasonable to charge 1/5 or $2,000 as expense in each of the five years.
At the time the machine is acquired, we do not know how long it will prove to be useful. Therefore, one must estimate its useful life.
The process of recognizing a portion of the cost of an asset as an expense during each year of its estimated useful life is called depreciation. For example, the $2,000 we take as an expense during each year of the five years of useful life of a machine tool that cost $10,000 is termed the depreciation expense for one year.
An asset can become useless for either or both of two reasons:
(1) it may wear out physically; or
(2) it may become obsolete.
A loss of usefulness because of the development of improved equipment, changes in style, or other causes not related to the physical condition of the asset is an example of (2).
Depreciation of an asset relates both to physical wear and to obsolescence. Thus depreciation includes obsolescence. Since depreciation includes obsolescence, it is not quite correct to speak of depreciation and obsolescence as though they are two different phenomena.
To sum up, depreciation is the process of converting the cost of an asset into expense over the life of the asset. This process is employed because an asset gradually loses its usefulness. An asset can lose its usefulness for two reasons:
(a) it wears out;
(b) it becomes obsolete.
PureComfortLinens.com, the ecommerce outlet of Vicera Enterprises, Inc., a duly registered corporation, offers a wide variety of high quality bedding and accessories for every bedroom in your house. It carries simple and colorful linens, stylish bedspreads, conventional comforters with self corded edge finish, etc., balmy pillows, beautiful pillow cases and other bed accouterments. We have been providing consumers with durability and comfort at reasonable prices.
















































































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