Rizio Company purchases a machine for $10,000, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $100 discount. Transportation costs of $226 were paid by Rizio. The machine required mounting and power connections costing $691. Another $326 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $365 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded

Rizio Company purchases a machine for $10,000, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $100 discount. Transportation costs of $226 were paid by Rizio. The machine required mounting and power connections costing $691. Another $326 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $365 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded

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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Rizio Company purchases a machine for $10,600, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $106 discount. Transportation costs of $240 were paid by Rizio. The machine required mounting and power connections costing $733. Another $346 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $325 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Rizio Company purchases a machine for $13,600, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $272 discount. Transportation costs of $307 were paid by Rizio. The machine required mounting and power connections costing $940. Another $443 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $270 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine, Amount Included in Cost of Equipment: Invoice price of machine 24 13,600 272 Net purchase price 13,328 Transportation 307 Mounting and power connections 940 Assembly 443 Materials used in adjusting 40 Total cost to be recorded 2$ 15,058 eBook Pro G Search or type URL ** %23 $4 & 2 4. 6 7 10 E T Y U D F G H. K L
Rizio Company purchases a machine for $13,800, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $276 discount. Transportation costs of $312 were paid by Rizio. The machine required mounting and power connections costing $954. Another $450 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $285 worth of repairs were made.
Rizio Co. purchases a machine for $12,000, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $120 discount. Transportation costs of $271 were paid by Rizio. The machine required mounting and power connections costing $830. Another $391 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $360 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Rizio Co. purchases a machine for $14,800, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $148 discount. Transportation costs of $334 were paid by Rizio. The machine required mounting and power connections costing $1,023. Another $482 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $215 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded
Rizio Co. purchases a machine for $12,500, terms 2∕10, n∕60, FOB shipping point. Rizio paid within the discount period and took the $250 discount. Transportation costs of $360 were paid by Rizio. The machine required mounting and power connections costing $895. Another $475 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $180 worth of repairs were made. Compute the cost recorded for this machine.
Granite Company purchased a machine costing $121,000, terms 2/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,100. The machine requires special mounting and wiring connections costing $10,100. When installing the machine, $1,600 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.
Grab Manufacturing Co. purchased a ten-ton draw press at a cost of $180,000. Since the company made a cash payment, a discount of $9,000 is received in the purchase. Shipping costs were $4,600, which included $200 for insurance in transit. Installation costs totaled $12,000, which included $4,000 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. Insurance expenses paid for the first year is $10,000. The capitalized cost of the ten-ton draw press is:
Raymond Stamping Services purchased a stamping machine priced at $21,500. The firm had to pay a sales tax of $1,200 on this purchase. Raymond also paid the inbound transportation charges of $525 on the new machine, as well as a labor cost of $1,350 to install the machine in the factory. In addition, Raymond had to prepare the site before installation at a cost of $2,125. Determine the cost basis for the new machine for depreciation purposes.
Rizio Co. purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. The seller prepaid the $283 freight charges, adding the amount to the invoice and bringing its total to $12,783. The machine requires special steel mounting and power connections costing $864. Another $407 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $325 in damages occurred. Materials costing $40 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages. Complete the below table to calculate the cost recorded for this machine. (Rizio pays for this machine within the cash discount period.) Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded
Anchor Company purchased a manufacturing machine with a list price of $88,000 and received a 2% cash discount on the purchase. The machine was delivered under terms free on board (FOB) shipping point, and transportation costs amounted to $2,800. Anchor paid $3,900 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $5,000 for the first year of operations. What is the cost of the machine? Multiple Choice O O O O $92,940 $97,940 $89,040 $86,240
Blake furniture recently purchased new equipment for its plant. The list price of the equipment was $40,000. Company paid sales taxes of $2,100 at the date of purchase. Freight charges for theequipment totaled $680. Installation and training costs related to the equipment amounted to $900. During installation, one of the pieces of equipment was accidentally damaged It cost $400 to repair this damage. Blake furniture will depreciate this equipment by straight-line method with half-year convention over an estimated useful life of 3 years assuming a $3,000 scrap value. a. The only accurate way to account for the success or failure of an entity is to accumulate alltransactions from the opening of business until the business eventually liquidates. Comment andexplain whether this is true or not. Moreover, how do you think the concept of consistency aidin the analysis of financial statements? What type of accounting disclosure is required if thisconcept is not applied?