composed of a concrete dam, a concrete spillway and a series of locks. Non-Capital Livestock Animals that are to be sold within one year are considered inventory and classified as a current asset (and not a capital asset). Livestock held for resale is recorded at market value at June 30 of each year. Other Capitalized Assets All assets that meet the definition of major property not in another asset type. This category could include livestock. Other Intangibles All intangible assets not identified as another intangible asset type. Examples include copyrights, patents and trademarks. Software – Purchased Commercially available software that is purchased or licensed with little or no modifications required before use. Software – Internally Generated Software developed in-house or by a third-party contractor on behalf of the organization, along with commercially available software that is modified using more than minimal effort before being put into operation. Subsystem of a Network of Assets All assets that make up a similar portion or segment of a network of assets. For example, all the roads of a government could be considered a network of infrastructure assets. Interstate highways, state highways and rural roads could each be considered a subsystem of that network. Supplies and Materials Consumable commodities purchased for inventory or immediate consumption; articles and commodities which are consumed or materially altered when used; and software and fixed assets with a unit cost of less than the capitalization threshold. Examples include operating supplies, office supplies, and small tools (expenditure accounts 622XX). Such items are not entered into AM. Works of Art and Historical Collections Works of art and historical treasures (including related collections) will be capitalized as required under GASB Statement No. 34 paragraphs 27 through 29 and note 22. These will be capitalized by the State and are not depreciable. Capitalized collections or individual items that are “exhaustible such as exhibits whose useful lives are diminished by display or educational or research activities will be depreciated.” A separate depreciable category and related accounts have been established for this activity. Capital Asset Thresholds State agencies are required to capitalize tangible and intangible assets when an item's unit cost meets or exceeds the capitalization threshold. Items costing less than the capitalization threshold must be expensed in the year of purchase. For
To record capital livestock sale Debit 1104 Cash in Bank Debit 62808 FA Loss on Sales/Disposals Credit 550400 Gain on Sale of Fixed Assets Credit 1711 Livestock Accounting for non-capital livestock (livestock Inventory) A physical inventory, performed by the department that manages the livestock, is required on an annual basis. This inventory is a summary of all livestock (bred, purchased or gifted), and must include the fair market value per head (based on the most likely market for that particular department), the number of head, and the total fair market value of all livestock. The results of the inventory should be used to record all purchases, gifts or sales of livestock not recorded during the year, as well as any needed valuations adjustments. Examples of these entries are detailed below. To record livestock received as a gift Debit 1805 Livestock Inventory Credit 581400 Donations To record purchased livestock inventory Debit 62xxx Operating Expense Credit 1104 Cash in Bank To record the sale of livestock inventory for Universities Debit 1104 Cash in Bank Credit 550100 Educ Activity Sales & Service To record the sale of livestock inventory for MCE Debit 1104 Cash in Bank Credit 553000 Prison Merchandise Sold To record annual inventory increases Debit 1805 Livestock Inventory Credit 62884 Pris Rance Livestock Inventory