A petty cash fund is used to pay relatively large amounts. a. ...

[chads108]

A petty cash fund is used to pay relatively large amounts.
 a. True
  b. False
 
   Indicate whether the statement is true or false

Question 2

Part A: Put an X in the appropriate box to show if these amounts related to the purchase of a new computer system are expenses or capital expenditures.
 
  During 2012, Webmasters, Inc.: Expense Capital expenditure
  1 paid 100,000 for a new computer system.
  2 paid the vendor 5,000 to install the system.
  3 paid 4,000 to the computer programmers to transfer the data from the old system to the new system.
  4 paid 400 for the removal of the old computer system.
  5 paid 1,000 training the employees to use the new computer system.
  6 paid 1,000 for the annual off-site storage of its backed-up data.
  7 paid 10,000 for additional memory to be installed in the computer system.
 
  Part B: What other information is needed to calculate double-declining depreciation expense for the year 2012?

[lkoler]

Answer to Question 1

False

Answer to Question 2

Part A:
During 2012, Webmasters, Inc.: Expense Capital expenditure
1 paid 100,000 for a new computer system. X
2 paid the vendor 5,000 to install the system. X
3 paid 4,000 to the computer programmers to transfer the data from the old system to the new system. X
4 paid 400 for the removal of the old computer system. X
5 paid 1,000 training the employees to use the new computer system. X
6 paid 1,000 for the annual off-site storage of its backed-up data. X
7 paid 10,000 for additional memory to be installed in the computer system. X

Part B: Expected useful life (Salvage value is NOT needed for the first year of double-declining balance depreciation.) and date placed in service.