do the accounting activities in the attachments 494588

Answer eye openers Which of the following qualities are characteristic of fixed assets? (a) tangible, (b) capable of repeated use in the operations of the business, (c) held for sale in the normal course of business, (d) used rarely in the operations of the business,(e) long-lived. 2. Mancini Office Supplies has a fleet of automobiles and trucks for use by salespersons and for delivery of office supplies and equipment. East Village Auto Sales Co. has automobiles and trucks for sale. Under what caption would the automobiles and trucks be reported in the balance sheet of (a) Mancini Office Supplies, (b) East Village Auto Sales Co.? 3. Just Animals Co. acquired an adjacent vacant lot with the hope of selling it in the future at a gain. The lot is not intended to be used in Just Animals’ business operations. Where should such real estate be listed in the balance sheet? 4. My Mother’s Closet Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for $375,000. My Mother’s Closet Company decided to construct the addition itself at a cost of $298,500. What amount should be recorded in the building account? 5. Distinguish between the accounting for capital expenditures and revenue expenditures. 6. Immediately after a used truck is acquired, a new motor is installed at a total cost of $3,175. Is this a capital expenditure or a revenue expenditure? 7. How does the accounting for a capital lease differ from the accounting for an operating lease? 8. Are the amounts at which fixed assets are reported in the balance sheet their approximate market values as of the balance sheet date? Discuss. 9. a. Does the recognition of depreciation in the accounts provide a special cash fund for the replacement of fixed assets? Explain. b. Describe the nature of depreciation as the term is used in accounting. 10. Pac Vac Company purchased a machine that has a manufacturer’s suggested life of 15 years. The company…