Instructor Blog - Credit College - Accounting Essentials

Q: How did we get the $21,097 again on PowerPoint Slide 49 for Net Property, Plant and Equipment?

A: From Slide 48, we add Furniture and Fixtures of $40,179 and Transportation Equipment of $17,004, which gives us Gross Property, Plant and Equipment of $57,183. From this amount we deduct Accumulated Depreciation of $36,086 listed on Slide 48 to arrive at Net Property, Plant and Equipment of $21,097 reported on Slide 49.

Q: How did you know that Accumulated Amortization was associated with the Loan Fees?

A: Loan Fees is the only intangible account listed in the accounts for Fresno Properties. Therefore, Accumulated Amortization must be deducted from Gross Loan Fees of $63,063 to arrive at Net Loan Fees of $16,780, as reflected on Slide 60.