arburg Manufacturing Company purchased a machine on January 2, 20. The invoice price of the machine was P4,000,000, and the vendor offered percent discount for payment within ten days. The following additional cc were incurred in connection with the machine: Transportation-in 120,000 Installation cost 70,000 Testing costs prior to regular operation 55,000 If the invoice is paid beyond the discount period, Marburg should record acquisition cost of the machine at what amount?

arburg Manufacturing Company purchased a machine on January 2, 20. The invoice price of the machine was P4,000,000, and the vendor offered percent discount for payment within ten days. The following additional cc were incurred in connection with the machine: Transportation-in 120,000 Installation cost 70,000 Testing costs prior to regular operation 55,000 If the invoice is paid beyond the discount period, Marburg should record acquisition cost of the machine at what amount?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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Marburg Manufacturing Company purchased a machine on January 2, 2021. The invoice price of the machine was P40,000, and the vendor offered a 2 percent discount for payment within ten days. The following additional costs were incurred in connection with the machine: Transportation-in Installation cost Testing costs prior to regular operation If the invoice is paid within the discount period, Marburg should record the acquisition cost of the machine at O P41,650. O P41,100. O P40,400. O P39,200. P1,200 700 550
On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was P40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: P1,200 Installation cost: P700 Testing costs prior to regular operation: P550 If the invoice is paid February 1, the acquisition cost of the machine must be a. P41,650 b. P41,100 c. P40,400 d. P39,200 e. answer not given
On May 2, 2019 PIONEER, PHILS INC. Ships ten (10) Compact Disc Stereo to KALIDAD Appliance Center. Each Stereo system costs P10,000 and is to be sold at an advertised price of P14,000. PIONEER Paid freight in the amount of P1,200 while KALIDAD incurred a cartage of P500, which is reimbursable. The consignee is entitled to a commission of 20% of the authorized selling price. The Consignee sold all the units and remitted the balance due to the consignor along with the account sales. Required: 1. Prepare the journal entries in the books of hte consignee 2. Prepare the account sales
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On March 10, 2020, Stellar Company sold to Barr Hardware 230 tool sets at a price of $54 each (cost $28 per set) with terms of n/60, f.o.b. shipping point. Stellar allows Barr to return any unused tool sets within 60 days of purchase. Stellar estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2020, Barr returned 6 tool sets and received a credit to its account. Assume that instead of selling the tool sets on credit, that Stellar sold them for cash.
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