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 $25,000Annual maintenance cost of $37,000• Received 8% discount on sales priceA. 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

Answer : Calculate Acquisition cost of boat : Purchase price $4,500,000 Add : Cost to bring…

Answered: =t of $37,000 n sales price in cost of…

Business

Accounting

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

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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Question

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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