Mata Kuliah : Akuntansi Keuangan Menengah

Exercise:

Instructions: For each of the following items, indicate whether the expenditure should be
capitalized (C) or expensed (E) in the period incurred.

a. _____Improvement.
b. _____Replacement of a minor broken part on a machine.
c. _____Expenditure that increases the useful life of an existing asset.
d. _____Expenditure that increases the efficiency and effectiveness of a productive asset but
does not increases its residual value.
e. _____Expenditure that increases the efficiency and effectiveness of a productive asset
and increases the assets’s residual value.
f. _____Ordinary repairs.
g. _____Improvement to a machine that increased its fair value and its production capacity
by 30% without extending the machine’s useful life.
h. _____Expenditure that increases the quality of the output of the productive asset.

Answer:

a. Perbaikan (Dikapitalisasi)
= Sebagai peningkatan umumnya memperpanjang masa manfaat aset terkait.
b. Penggantiang bagian mesin yang rusak ringan (Dibebankan)
= Jika siku cadangnya kecil dan tidak memperpanjang masa manfaat mesin.
c. Pengeluaran yang meningkatkan masa manfaat dari aset yang ada (Dikapitalisasi)
= Karena ini meningkatkan masa manfaat dari aset yang ada.
d. Pengeluaran yang meningkatkan efisiensi dan efektivitas aktiva produktif tetapi tidak
meningkatkan nilai sisa (Dikapitalisasi)
 = Dengan alasan yang tercantum dalam penjelasan (peningkatan efisiensi dan efektivitas
harus diakui sebagai beban pro-rata selama sisa masa manfaat aktiva produktif yang
bersangkutan).
e. Pengeluaran yang meningkatkan efisiensi dan efektivitas aset produktif dan
meningkatkan nilai sisa aset (Dikapitalisasi)
= Dengan alasan yang sama dengan penjelesan sebelumnya (nomor d).
f. Perbaikan biasa (Dibebankan)
= Mahal, perbaikan dan pemeliharaan biasa umumnya selalu dibebankan pada periode
terjadinya.
g. Penyempurnaan mesin yang meningkatkan nilai pasar wajar dan kapasitas produksinya
sebesar 30% tanpa memperpanjang umur manfaat (Dibebankan)
= Dengan alasan bahwa peningkatan tersebut meningkatkan kapasitas produksi, dan
kapasitas produksinya tidak memperpanjang umur manfaat.
h. Pengeluaran yang meningkatkan kualitas output dari aktiva produktif (Dikapitalisasi)
= Dengan alasan bahwa pengeluaran harus dibebankan pada peningkatan kualitas
output dari aset produktif di masa mendatang.

Exercise:

E10.1 (LO2) (Acquisition Costs of Reality) The expenditures and receipts below are related to
land, land improvements, and buildings acquired for use in a business. The receipts are enclosed
in parentheses.

a. Money borrowed to pay building contractor (signed a note) € (275,000)

b. Payment for construction from note proceeds € 275,000
c. Cost of land fill and clearing € 10,000
d. Delinquent real estate taxes on property assumed by purchaser € 7,000
e. Premium on 6-month insurance policy during construction € 6,000
Refund of 1-month insurance premium because construction
f. € (1,000)
completed early
 g. Architect's fee on building € 25,000
Cost of real estate purchased as a plant site (land 200.000 and
h. € 250,000
building 50.000
i. Commission fee paid to real estate agency € 9,000
j. Installation of fences around property € 4,000
k. Cost of razing and removing building € 11,000
l. Proceeds from residual value of demolished building € (5,000)
Interest paid during construction on money borrowed for
m. € 13,000
construction
n. Cost of parking lots and driveways € 19,000
o. Cost of trees and shrubbery planted (permanent in nature) € 14,000
p. Excavation costs for new building € 3,000

Instructions: Identify each item by letter and list the item in columns form, using the headings
shown below. All receipt amounts should be reported in parentheses. For any amounts entered in
the Other Accounts column, also indicate the account title.

Answer:

Fixed Assets are those assets which are converted into cash after period of the 12 months or after
the completion of the operating cycle of the company.

Table showing the classification of the items

Item Land Land Building Other

Improvement Account
a. Borrowed amount to pay -€ 275.000
contractor (Notes
payable)
b. Payment from note €275.000
proceeds
c. Fill and clearing cost €10.000
d. Real estate taxes €7.000
e. Premium on insurance €6.000
f. Refund of insurance -€1.000
premium
g. Architect fees €25.000
h. Real estate purchasing €250.000
cost
i. Commission to real €9.000
estate agency fee
j. Fence installation €4.000
k. Building removing cost €11.000
l. Salvage value of -€5.000
building
m Interest paid during €13.000
. construction
n. Parking lots and €19.000
driveaway cost
o. Trees and shrubbery cost €14.000
p. Excavation cost €3.000