Equipment account

Let us consider the purchase of 50,000 worth of plant equipment by company A, paid for by check. The accounting entries are debit the plant-equipment account 50,000, and credit the bank account 50,000. The plant-equipment account is then said to have a debit balance of 50,000, and the bank account a credit balance of 50,000, if these happen to be the only entries. 

Revenues include cash received from sales of products and services. Cash received from the sale of equipment, buildings, and equipment is not considered revenue but is instead a decrease in the property and equipment accounts (assets). 

These cash expenses are those necessary to carry on the business, that is, expenses paid to generate revenue. A capital expenditure for plant or equipment generally is not an expense but an addition to the plant or equipment account (an asset). Typical expenses include cost of products sold, repairs, insurance, salaries, property taxes, and so on. 

Occupational exposure potential bears an inverse relationship to the amount of ETO used in one s work. Thus, health care and medical industries consume less than l/4%(0.25%) of annual ETO production, with sterilization of hospital equipment accounting for less than 0.1 of the latter amount, e.g., 0.02% of production. Yet approximately 75000 health care workers in sterilization areas are at risk, and improper engineering and/or administrative controls were found to account for another estimated 25000 workers unnecessarily exposed to ETO. 

Separate ledger accounts may be kept for various items, such as cash, equipment accounts receivable, inventory, accounts payable, and manufacturing expense. A typical ledger sheet is shown in Fig. 5-5. The ledger sheets serve as a secondary record of business transactions and are used as the intermediates... 

The Equipment account could be broken down by types of equipment and. in definitive and engineering estimates, even by equipment item. Electrical equipment, transformers, switch gears, etc., should be included in the electrical account. Freight must be included with the equipment cost either as a separate line item or included with purchase cost of each item. 

Equipment Erection - 20% of the equipment account is usually a generous allowance and should be used for preliminary estimate. On appropriation or definitive estimate the individual work hours in Table 19.1 should be used. 

In the absence of more precise information, they have proved to be very quick and reasonably accurate especially when applied to a substantial number of pieces of equipment such as the entire equipment account of a chemical process plant. They are also useful to determine whether the price quoted for a specific piece of equipment is reasonable. 

These procedures are more suitable for detailed or semi-detailed estimates where the various commodities (civil, piping, electrical, etc.) are estimated individually or related to equipment count rather than to equipment cost. These procedures should not be used in factored estimates where an error in the equipment account would be greatly amplified by the time it reaches the bottom line. 

The same situation occurs when commodities (concrete, structural steel, electrical, etc.) are priced. If they are factored from the equipment account or derived from the actual cost of other projects, they could either be high or low. However, if they are developed through take-offs, from drawings at various stages of completion, the errors will be omissions rather than additions and some growth in quantities is expected. The amount of growth will be inversely proportional to the completion of engineering. 

The equipment account and all civil accounts, as well as the Electrical Account and the Contract Engineering man-hours can be estimated with the respective semi-detailed procedures in Chapter 19. 

In this case we must factor to the equipment account following the guidelines in Table 10.1. 

TABLE 9-18 Provision for Depreciation of Piant-Equipment Account... 

The source of corrosion costs varies considerably from one industry to another. Replacement of equipment accounts for corrosion costs in wholesale and retail sections in the livestock sector. In the case of industrial chemicals, the largest part of total corrosion costs is because of inhibitors/water treatment and maintenance and repair. In the case of public utility construction, the largest portion of total corrosion cost is because of inputs such as corrosion-resistant materials, cathodic protection, and coatings. 

Power conversion system cost. The costs of the power conversion system were estimated from Ref. 49. Costs are reported only at the two-digit code of account level. In addition, the turbine plant equipment, account 23, was combined with the reactor plant equipment, account 22, as GA contended that all this equipment was part of the reactor system. In order to estimate the portion of these combined costs that applied to power conversion, cost partition factors were estimated by utilizing an earlier direct cycle MHTGR document. ... 

When a so called draught diverter is implemented the exhaust channel is placed over the outlet of the equipment like an inverted funnel. At switched-off status, air will be sucked out from the room, bypassing the equipment. When switched-on the air leaves the room mainly through the equipment. Accounting for the volume of air that passes through the equipment is necessary in the calculation of the air balance. For the air pressure or ventilation factor in the room it doesn t matter whether the equipment is switched on or off. 

All personnel, tools and equipment accounted for Operation successfully restored... 

The sources of ignition are shown in Figure 15.6. Out of the 25000 accidental fires in 1999, it shows that cooking appliances and electrical equipment account for 25% of the total. 

In the organic synthesis, the consumption of raw materials accoimts for 50% 80% of the production cost, so the selectivity of catalyst affecting the consmnption of raw materials has a huge economic significance. For example, the cost of aU equipment accounts for about 1% of the jdeld of ethylene oxide for production equipment of ethylene oxide with capacity of 50 kt. The increase in the cataljdic selectivity sometimes can be represented in saving the investment of capital construction and the energy consumption of the separation process. 

Electronics and telecommunications are the largest users of LCP with a share of 75% of total world consumption in 2002. Consumer products such as audio and video equipment, account for 8% with industrial applications also accounting for 8%. Automotive represents 5% of total consumption. 

Description of hazard. According to the Bureau of Labor Statistics, transportation incidents and workers struck by vehicles or mobile equipment account for the highest number of fatal work injuries. In a work zone, workers are susceptible to the careless driving of oncoming traffic as well as to the actions of work vehicles and equipment. 

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