FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Kegler Bowling buys scorekeeping equipment with an invoice cost of $190,000. The electrical work required
for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales
tax. During the installation, the equipment was damaged and the cost of repair was $1,850.
What is the total recorded cost of the scorekeeping equipment?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Nancy, Inc. purchased a long-haul truck from Sebring Trucks for $300,000. Nancy paid $1,360 freight for delivery of the truck and $8,600 to install radio and computer equipment in the truck. The truck driver went to a special school (at no charge to Nancy) to learn the computer technology. This training would have cost $2,400 if Nancy had not bought new radio and computer equipment. The state charged a 5% sales tax on the truck's invoice price. What is the capitalized cost of the truck? $300,000 $308,600 $317,200 $324,960arrow_forwardSouthwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,640. The seller agreed to allow a 5.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,230. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $970. The loader operator is paid an annual salary of $44,100. The cost of the company's theft insurance policy increased by $1,800 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $14,200 Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.arrow_forwardTim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table: Machine A Machine B Original Cost $15,000 $24,000 Labor per year $2,400 $4,000 Maintenance per year $4,300 $800 Salvage value $2,000 $7,500 He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks it knows how to make 14% on investments no more risky than this one. 3. Labor and maintenance are paid at the end of the year. The NPV for Machine B= $._____enter your response here arrow_forward
- Sandhill Co. purchases a new delivery truck for $78000. The sales taxes are $4400. The logo of the company is painted on the side of the truck for $1000. The truck’s annual license is $100. The truck undergoes safety testing for $240. What does Sandhill record as the cost of the new truck?arrow_forwardDuring year 1, Perez Manufacturing Company incurred $117,500,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year 1. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $64 per unit. Packaging, shipping, and sales commissions are expected to be $11 per unit. Perez expects to sell 2,500,000 batteries before new research renders the battery design technologically obsolete. During year 1, Perez made 434,000 batteries and sold 395,000 of them. Fill in the GAAP-based income statement for year 1. Use the sales price = 93.75 PEREZ MANUFACTURING COMPANY Income Statement Sales revenue Cost of goods sold Gross margin Depreciation expense Inventory holding expense Research & development expense Net income (loss) 0 $0 Farrow_forwardOn March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The purchase price of the patent is $1,340,000. The patent is expected to benefit the company for the next five years. The company had the following additional costs: $34,000 in legal fees associated with the purchase and filling of the patent, $49,000 to advertise its new laser surgery techniques, and $59,000 to train employees. None of these additional costs were included in the purchase price or paid to the seller. Now assume that instead of purchasing the patent, Advanced Technologies spent $1,340,000 to develop the patent internally, consisting of personnel ($870,000), equipment ($342,000), and materials ($128,000). All additional costs were incurred for the same amount. What is the recorded cost of the patent? Total capitalized costarrow_forward
- Oriole provides enivronmentally friendll laswn services for homeownders. Its operating costs are as follows: depreciation (straight-line) $1500 per month advertising $400 per month insurance $3560 per month weed and feed materials $24 per lawn dircet labor $3 per lawn fuel $1 per lawn Oriole charges $80 per treatment for the average single family lawn. For the month ended July 31, 2022, the company had total sales of $9600. Prepare a CVP Income statement for the month ended July 31,2022.arrow_forwardRequired information [The following information applies to the questions displayed below.] Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $4,200 per machine. HEC usually sells these machines to hospitals at a price of $7,440. HEC also separately sells 12 months of training and repair services for fMRI machines for $1,860. HEC is paid $7,440 cash on November 30 for the sale of an fMRI machine delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair service. Required: 1. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair services. Equipment Service Allocated Transaction Pricearrow_forwardRahularrow_forward
- A local manufacturing company estimated the following expenses for the upcoming year: a. Insurance on factory: $100,000 b. Factory security: 1 guard at $20/hour for a 2,000 hour work year . 1 production supervisor at $90,000/year d. Repair/Maintenance Technicians: 2 technicians at $40/hour each for a 2,000 hour work year e. Depreciation: $25/machine hour f. Utilities: $7/machine hour The company applies overhead on the basis of machine hours. Required: Build the cost formula Assume one unit of output takes 2 machine hours, and the estimated production for the year is 20,000 units • Calculate the expected number of machine hours to be used in the year. o Calculate the estimated total manufacturing overhead cost. o Calculate the applied overhead rate per machine hour. o Calculate the applied overhead per unit of output.arrow_forwardSouthwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $124,960. The seller agreed to allow a 5.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,820. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $870. The loader operator is paid an annual salary of $15,500. The cost of the.company's theft insurance policy increased by $2,320 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $7,600. Required Determine the amount to be capitalized in the asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costsarrow_forwardABC Company replaced some parts of its factory building as well as its annual maintenance and upkeep during 2020: The outside corrugated covering of the factory wall was removed and replaced. The job was done by an expert crew from Bayani Construction Company and will extend the life of the building by 4 years. The cost of the new wall was ₱600,000. The cost of the old wall is estimated to be ₱200,000. The building is 25% depreciated. General maintenance and tune up to its factory equipment in order to maintain their current projected capacity were incurred at a cost of ₱150,000. Dust filters in the interior of the factory were replaced at a cost of ₱300,000. The new filters are expected to reduce employee health hazards and thus reduce wage and fringe benefit costs. The original filters cost ₱100,000. What is the total amount to be expensed from the given expenditures of ABC Company? ₱1,150,000 ₱900,000 ₱450,000 ₱150,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education