2. Depreciation methods 3. Partial-year depreciation
4. Changes in estimates for depreciation 5. Reporting depreciation
C. Additional Expenditures
1. Ordinary repairs
2. Betterments and extraordinary repairs D. Disposal of Plant Assets 1. Discarding plant assets 2. Selling plant assets
SECTION 2: NATURAL RESOURCES
A. Cost Determination and Depletion
B. Plant Assets Used in Extraordinary Resources
SECTION 3: INTANGIBLE ASSETS
A. Cost Determination and Amortization B. Types of intangibles
【Key points & Difficult points】
Key points：Account for transactions relevant to plant assets, including their purchase, depreciation, additional expenditure and disposal.
Compute depreciation using the straight-line, units-of-production, and
declining-balance methods.
Difficult points：Compare and analyze alternative depreciation methods.
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Chapter 11 Current Liabilities and Payroll Accounting
【Objectives】
In this chapter, you will learn the following conceptual objectives: C1: Describe current and long-term liabilities and their characteristics C2: Identify and describe known current liabilities C3: Explain how to account for contingent liabilities
In this chapter, you will learn the following procedural objectives: P1: Prepare entries to account for short-term notes payable P2: Compute and record employee payroll deductions and liabilities P3: Compute and record employer payroll expenses and liabilities P4: Account for estimated liabilities, including warranties and bonuses
【Contents】
A. Characteristics of Liabilities
1. Classifying liability 2. Uncertainty in liability
B. Known Liabilities
1. Accounts payable 2. Short-term notes payable 3. Payroll liabilities
C. Estimated Liabilities
1. Health and pension benefits 2. Vacation benefits 3. Warranty Liabilities
4. Multiple-period estimated liabilities
D. Contingent liabilities
1. Accounting for contingent liabilities 2. Reasonable possible contingent liabilities
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【Key points & Difficult points】
Key points：Account for known current liabilities，including accounts payable, short-term notes payable and payroll liabilities
Difficult points：Estimated liabilities and contingent liabilities
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Chapter 12 Long-Term Liabilities
【Objectives】
In this chapter, you will learn the following conceptual objectives: C1: Explain the types and payment patterns of notes
In this chapter, you will learn the following analytical objectives: A1: Compare bond financing with stock financing
In this chapter, you will learn the following procedural objectives: P1: Prepare entries to record bond issuance and bond interest expense P2: Compute and record amortization of bond discount P3: Compute and record amortization of bond premium P4: Record the retirement of bonds P5: Prepare entries to account for notes
【Contents】
A. Basics of Bonds
1. Bond financing 2. Bond trading
3. Bond-issuing procedures
B. Bond Issuances
1. Issuing bonds at par 2. Bond discount and premium 3. Issuing bonds at a discount 4. Issuing bonds at a premium 5. Bond pricing
C. Bond Retirement
1. Bond retirement at maturity 2. Bond retirement before maturity 3. Bond retirement by conversion
D. Long-term Notes Payable
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1. Installment notes 2. Mortgage notes and bonds
【Key points & Difficult points】
Key points：Prepare entries to record bond issuance, bond interest expense and bond retirement Difficult points：Amortization of bond discount and bond premium and its impact on bond interest expense
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