Course Outline: Module 7
Operating Assets
ACC 201 Financial Accounting
The primary goal of this module is: examine the measurement and reporting of operating assets.
Module 2 – The Accounting Information System
Introduction
Operating assets are the long-lived assets that a company uses in its normal operating activities. They
include things like land, buildings, equipment, vehicles, natural resource, and even intangible assets. In
this chapter, we will explore accounting for the acquisition, use and disposal of these assets.
<insert clip art “depreciation”>
Learning Objectives
After completing this module, students will be able to:
1. Define, classify, and describe the accounting for operating assets.
2. Explain how the historical cost principle applies to recording the cost of a fixed asset.
3. Understand the concept of depreciation.
4. Compute depreciation expense using various depreciation methods.
5. Distinguish between capital and revenue expenditures.
6. Understand and account for revisions in depreciation.
7. Describe the process of recording the disposal of a fixed asset.
8. Evaluate the use of fixed assets.
9. Understand the measurement and reporting of intangible assets.
10. Understand the measurement and reporting of natural resources.
Due This Week
Assignment
Format
Grading
Interactive Lecture and Quiz
PowerPoint presentation
5 points
Lesson 1 Homework
CengageNow
5 points
Lesson 1 – Operating Assets and Acquisition
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Lesson 2 – Measuring and Recording
Depreciation
Interactive Lecture and Quiz
PowerPoint presentation
5 points
Lesson 2 Homework
CengageNow
5 points
Interactive Lecture and Quiz
PowerPoint presentation
5 points
Lesson 3 Homework
CengageNow
5 points
Lesson 3 – Impairment, Disposal, Intangibles
and Depletion
*Use this table to fill out the course calendar. Be sure to add dates in the course calendar.
Learning Activities
The learning activities section is a way for you to sequence your students learning. Consider this as
your way of guiding them to understanding and scaffolding their learning. Be creative, use the right
tool for the right objectives and whenever possible integrate knowledge checks with feedback and/or
reflection. Be sure to provide an overview of each activity in the sequence and how it will help the
learner achieve the learning objectives. Add learning activities as necessary.
Lesson 1 – Operating Assets and Acquisition
In this lesson you will learn how to record the acquisition (usually purchase) of tangible assets like land,
land improvements, buildings and equipment.
Reading
Read pages 330 - 333 in your textbook, Cornerstones of Financial Accounting.
This reading will define operating assets and demonstrate how to record the purchase of such assets.
Interactive Lecture
Operating Assets and Acquisition
In this narrated PowerPoint lecture you will learn about acquiring operating assets and what costs should
be included. You will see how to journalize these acquisitions.
Activity
Assignment Name
CengageNow Homework
Graded Assignment
YES
<insert CengageNow link here>
Points Possible
5 pts
www.cengagebrain.com
©2012 Gateway Community College
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Lesson 1 Homework Problems from CengageNow
After completing the reading and the interactive lecture, proceed to CengageNow to complete Module 7,
Lesson 1, “Operating Assets and Acquisition”.
Grading and Feedback
You can expect this assignment to be graded in CengageNow immediately after your submission.
Lesson 2 – Measuring and Recording Depreciation
Depreciation is the systematic expensing of operating assets. This is the matching principle in practice.
In this lesson you will see three different types of depreciation illustrated. The lesson will also cover
subsequent expenditures after acquisition and revision of depreciation.
Reading
Read pages 334 - 347 in your textbook, Cornerstones of Financial Accounting.
This reading will demonstrate the recording of three methods of depreciation, how to account for
expenditures after the acquisition of operating assets, and the revision of depreciation.
Interactive Lecture
Measuring and Recording Depreciation
In this narrated PowerPoint lecture you will see examples of the journal entries for three depreciation
methods, the difference between revenue and capital expenditures after acquisition of operating assets
and the revision of depreciation
Activity
Assignment Name
CengageNow Homework
Graded Assignment
YES
<insert CengageNow link here>
Points Possible
5 pts
www.cengagebrain.com
Lesson 2 Homework Problems from CengageNow
After completing the reading and interactive lecture, proceed to CengageNow to complete Module 2,
Lesson 2, “Measuring and Recording Depreciation”.
Grading and Feedback
You can expect this assignment to be graded immediately in CengageNow after your submission.
Lesson 3 – Impairment, Disposal, Intangibles and Depletion
Finally, you will learn in this lesson a few more odds and ends regarding operating assets. This lesson
covers impairment, disposing of operating assets and measuring recording the use of intangible assets
and natural resources (depletion).
©2012 Gateway Community College
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Reading
Read pages 347 -356 in your textbook, Cornerstones of Financial Accounting.
This reading will define impairment, disposal, intangible assets and depletion and show how to measure
and record each of these.
Interactive Lecture
Impairment, Disposal, Intangibles and Depletion
In this narrated PowerPoint lecture you will learn how to define and measure other activities involved in
operating assets. You will learn what to do when an asset becomes “impaired,” how to dispose of an
asset, and how to record intangible asset and natural resource activity.
.
Activity
Assignment Name
CengageNow Homework
Graded Assignment
YES
<insert CengageNow link here>
Points Possible
5 pts
www.cengagebrain.com
Lesson 3 Homework Problems from CengageNow
After completing the reading and interactive lecture, proceed to CengageNow to complete Module 7,
Lesson 3, “Impairment, Disposal, Intangibles and Depletion”.
Grading and Feedback
You can expect this assignment to be graded immediately in CengageNow after your submission.
Next Step – Module 8
©2012 Gateway Community College
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