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Chapter 8: Q19DQ (page 386)

Question: Refer to Samsung’s balance sheet in Appendix A. What does it title its plant assets? What is the book value of its plant assets on December 31, 2015?

Short Answer

Expert verified

In Samsung’s balance sheet, the plant assets are recorded under Plant, property and equipment head.

The book value of its plant assets on December 31, 2015 is 86,477,110 million.

Step by step solution

01

Plant assets

Plant assets are tangible assets used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called plant and equipment; property, plant, and equipment (PP&E); or fixed assets.

02

Plant assets in the balance sheet of Samsung

In the balance sheet of Samsung, plant assets are shown under property, plant, and equipment head.

03

Book value of plant assets

The book value of plant assets on the balance sheet of Samsung on December 31, 2015, is KRW 86,477,110 million.

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Most popular questions from this chapter

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of \(43,500. The machine’s useful life is estimated at 10 years, or 385,000 units of product, with a \)5,000 salvage value. During its second year, the machine produces 32,500 units of product. Determine the machine’s second-year depreciation using the units-of-production method.

Yoshi Company completed the following transactions and events involving its delivery trucks.

2016

Jan. 1 Paid \(20,515 cash plus \)1,485 in sales tax for a new delivery truck estimated to have a five year life and a \(2,000 salvage value. Delivery truck costs are recorded in the Trucks account.

Dec. 31 Recorded annual straight-line depreciation on the truck.

2017

Dec. 31 Due to new information obtained earlier in the year, the truck’s estimated useful life was changed from five to four years, and the estimated salvage value was increased to \)2,400. Recorded annual straight-line depreciation on the truck.

2018

Dec. 31 Recorded annual straight-line depreciation on the truck.

31 Sold the truck for $5,300 cash.

Required

Prepare journal entries to record these transactions and events

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