A machine was purchased for $7,000, terms 2/10, n/60, FOB vendor's factory. The invoice was paid within the discount period along with $175 of freight charges. The machine was installed on a special concrete base by the employees of the company that bought it. The concrete base and special power connections for the machine cost $575, and the wages of the employees during the period in which they installed the machine amounted to $425. The employees accidentally dropped the machine while moving it onto its special base, causing damages to the machine which cost $125 to repair. As a result of all this, the cost of the machine for accounting purposes was

A machine was purchased for $7,000, terms 2/10, n/60, FOB vendor's factory. The invoice was paid within the discount period along with $175 of freight charges. The machine was installed on a special concrete base by the employees of the company that bought it. The concrete base and special power connections for the machine cost $575, and the wages of the employees during the period in which they installed the machine amounted to $425. The employees accidentally dropped the machine while moving it onto its special base, causing damages to the machine which cost $125 to repair. As a result of all this, the cost of the machine for accounting purposes was

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A contractor imported a bulldozer for his job paying $260,000 to the manufacturer. Freight and insurance charges amounted to $28,000, custom's broker's fees and arrastre services is worth $8,500 while taxes, permits, and other expenses is worth $38,000. If the contractor estimates the life of the bulldozer to be 10 yrs with a salvage value of $10,000, determine the book value at the end of 6 yrs using a.) double declining balance method and b.) sum of the year's digit.
Moby Co. purchased land costing $2,550,000 as a future factory site. Moby paid $240,000 to tear down two buildings on the land. Some Amish folks came along and paid them from the scrap lumber. They paid $2,450 cash for it. Moby paid the lawyer $4,555 in fees for the title investigation and for making the purchase. The architect's fees were $85,600. The cost for the title insurance was $4,600, and liability insurance costs during the construction phase for the factory was $12,640. The excavation cost to clear the ground for the new building was $19,450. They paid the building contractor $8,200,000. The interest costs during the construction phase of the building was $465,000. What should Moby record as cost of the land? Question options: 2,796,705 2,882,305 2,799,155 2,550,000
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On April 29, Welllington Co. paid $3,230 to install a hydraulic lift and $46 for an air filter for one of its delivery trucks. Journalize the entries for the new lift. Journalize the entry for air filter expenditures.
Crane Corp. purchased land as a factory site for $280000. They paid $12200 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1310. Legal fees of $830 were paid for title investigation and making the purchase. Architect's fees were $10370. Title insurance cost $610, and liability insurance during construction cost $650. Excavation costs were $2970. A contractor was paid $677000 to construct the new building. An assessment made by the city for pavement was $1740. Interest costs during construction were $43300. The cost of the land should be recorded at $292330. O $294770. O $296510. O $294070.
Carla Vista Corp. purchased land as a factory site for $330000. They paid $10400 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1330. Legal fees of $840 were paid for title investigation and making the purchase. Architect's fees were $10490. Title insurance cost $620, and liability insurance during construction cost $650. Excavation costs were $3430. A contractor was paid $657000 to construct the new building. An assessment made by the city for pavement was $1690. Interest costs during construction were $43000. The cost of the land should be recorded at Select answer from the options below $342930. $344620. $340530. $342220.
Salman and Adnan Corporation purchased typesetting equipment having a list price of Rs. 306,000 from a manufacturing in the Z area. Credit terms for the transaction were 2/10, n/30. Salman and Adnan Corporation paid the invoice within the discount period, as well as an additional 7% sales tax on the net price. Other payments relating to the acquisition of the equipment were a freight bill of Rs. 3,894 and a labor cost for installing the equipment of Rs. 6,315. During the installation process, an accident caused damage to the equipment, which was repaired at cost of Rs. 7,500. As soon as the equipment was in place, the company obtained insurance on it for a premium of Rs. 2,700. Required: Compute the Cost of Equipment. Calculate the depreciation for first three years using declining method at twice the normal rate, assume that the machine has 6 years useful life and have an estimated value of Rs. 38,000. At the time of disposal (after 6 years) cash Rs. 45,000 were received from Ahmed…
Kegler Bowling buys scorekeeping equipment with an invoice cost of $155,000. The electrical work required for the installation costs $16,275. Additional costs are $3,255 for delivery and $11,170 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,505. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Answer is complete but not entirely correct. Included or Excluded Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ 155,000 Included Included Included 16,275 3,255 11,170 Included 1,505 Excluded $ 187,205 X Account DR Machinery DR Machinery DR Machinery DR Machinery DR Expense
A contractor imported a bulldozer for his job paying P 260,000 to the manufacturer. Freight and insurance charges amounted to P 28,000, custom's brokers fees and arrastre services is worth P 8,500 while taxes, permits and other expenses is worth P 38,000. If the contractor estimates the life of the bulldozer to be 10 yrs with a salvage value of P 10,000, determine the book value at the end of 6 yrs using a.) straight-line method; b.) sinking fund method at 8%; c.) Matheson Formula; d.) double declining balance method and e.) the sum of the year's digit.
Hello, How do i calculate the cost of equipment?
East and West Construction has undertaken the construction of a bridge over the River Till for the Campton Council. The value of the contract is $125,000 and it is at a stage where profits can be attributed to it. When work was certified, Campton Council was sent an invoice for progress payment. The contractors have given the contract number 86 for reference, and the following are the details as shown in the books: Labour on site Materials direct to site, less returns Materials from store and workshops Plant Upkeep Account-hire and use of plant Direct expenses General overhead apportioned to this contract Materials on hand November 30 Wages accrued at November 30 Direct expenses accrued Value of work certified by the council's surveyor Cash received on account Required: $ 40,500 42,000 8,120 1,210 2,300 3,710 630 780 160 110,000 88,000 (a) Prepare the contract 86 account as at November 30th 2011. (b) Prepare the contract P&L account for the year ended November 30th 2011.
Subject - account Please help me. Thankyou.