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Sawyer Corporation experienced several transactions

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Sawyer Corporation experienced several transactions Ex. 1—Plant asset accounting. During 2010 and 2011, Sawyer Corporation experienced several transactions involving plant assets. A number of errors were made in recording some of these transactions. For each item listed below, indicate the effect of the error (if any) in the blanks provided by using the following codes: O = Overstate; U = Understate; NE = No Effect If no error was made, write NE in each of the four columns. 2010 2011 Net Book Net Book Value of Value of Plant 2010 Plant 2011 Assets at Net Assets at Net Transaction 12/31/10 Income 12/31/11 Income 1. The cost of installing a new computer system in 2010 was not recorded in 2010. It was charged to expense in 2011. 2. In 2011 clerical workers were trained to use the new computer system at a cost of $15,000, which was erroneously capital-ized. The cost is to be written off over the expected life of the new computer system. 3. A major overhaul of factory machinery in 2010, which extended its useful life by 5 years, was charged to accumulated depreciation in 2010. 4. Interest cost qualifying for capitalization in 2010 was charged to interest expense in 2010. 5. In 2010 land was bought for an employee parking lot. The $2,000 title search fee was charged to expense in 2010. 6. The cost of moving several manufacturing facilities from metropolitan locations to suburban areas in 2010 was capitalized. The cost was written off over a 10-year period beginning in 2010. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Sawyer Corporation experienced several transactions

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