exercises and problems week 1 accounting 494628

JWCL165_c09_396-443.qxd 8/4/09 9:39 PM Page 396 Chapter 9 Plant Assets, Natural Resources, and Intangible Assets STUDY OBJECTIVES The Navigator ? After studying this chapter, you should be Scan Study Objectives ¦ able to: Read Feature Story ¦ 1 Describe how the cost principle applies Read Preview ¦ to plant assets. Read text and answer Do it! 2 Explain the concept of depreciation. p. 402 ¦ p. 409 ¦ p. 412 ¦ p. 417 ¦ 3 Compute periodic depreciation using Work Comprehensive Do it! p. 421 ¦ different methods. p. 422 ¦ 4 Describe the procedure for revising periodic depreciation. Review Summary of Study Objectives ¦ 5 Distinguish between revenue and Answer Self-Study Questions ¦ capital expenditures, and explain the Complete Assignments ¦ entries for each. 6 Explain how to account for the disposal of a plant asset. 7 Compute periodic depletion of natural resources. 8 Explain the basic issues related to accounting for intangible assets. 9 Indicate how plant assets, natural resources, and intangible assets are reported. The Navigator ? Feature Story HOW MUCH FOR A RIDE TO THE BEACH? It’s spring break. Your plane has landed, you’ve finally found your bags, and you’re dying to hit the beach—but first you need a “vehicular unit” to get 396JWCL165_c09_396-443.qxd 7/31/09 4:20 PM Page 397 you there. As you turn away from baggage claim you see a long row of rental agency booths. Many are names you are familiar with—Hertz, Avis, and Budget. But a booth at the far end catches your eye—Rent-A-Wreck (www.rent-a-wreck.com). Now there’s a company making a clear statement! Any company that relies on equipment to generate revenues must make decisions about what kind of equipment to buy, how long to keep it, and how vigorously to maintain it. Rent-A-Wreck has decided to rent used rather than new cars and trucks. It rents these vehicles across the United States, Europe, and Asia. While the big-name agencies push vehicles with that “new car smell,” Rent-A-Wreck…