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Revenue expenditures:

A lessee has substantially all of the benefits and risks of ownership in an operating lease.

A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. In the first year, 15,000 bolts were produced. In the second year, production increased to 19,000 units. Using the units-of-production method, what is the book value of the machine at the end of the second year?

A company retires its bonds at 105. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer’s journal entry to record the retirement will include a:

A particular feature of callable bonds is that they reduce the bondholder’s risk by requiring the issuer to create a sinking fund of assets set aside at specified amounts and dates to repay the bonds at maturity.

Plant assets refer to nonphysical assets that are used in the operations of a business.

A company had average total assets of $887,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company’s total asset turnover equals:

A company discarded a computer system originally purchased for $18,000. The accumulated depreciation was $17,200. The company should recognize a(an):

Plant assets are used in operations and have useful lives that extend over more than one accounting period.

Short-term notes payable: