=t of $37,000 n sales price in cost of the boat.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 9EA: Santa Rosa recently purchased a new boat to help ship product overseas. The following information is...
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Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase:
• Purchase price $4,500,000
• Cost to bring boat to production facility $25,000
• Yearly insurance cost $25,000
Annual maintenance cost of $37,000
• Received 8% discount on sales price
A. Determine the acquisition cost of the boat.
B. Record the journal entry needed. If an amount box does not require an entry, leave it blank.
10
Transcribed Image Text:Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: • Purchase price $4,500,000 • Cost to bring boat to production facility $25,000 • Yearly insurance cost $25,000 Annual maintenance cost of $37,000 • Received 8% discount on sales price A. Determine the acquisition cost of the boat. B. Record the journal entry needed. If an amount box does not require an entry, leave it blank. 10
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