The cost of ordinary repairs to equipment during the first year of service is added to the Equipment account?
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The cost of ordinary repairs to equipment during the first year of service is added to the Equipment account?
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- How should an expenditure for an ordinary repair to factory equipment be recorded? Question 10 options: Debited to accumulated depreciation. Debited to an asset account but not depreciated over future years. As an expense in the period incurred. Debited to an asset account and depreciated over the current and future years.Annual depreciation of equipment, where the amount of depreciation charged is computed by the machine-hours method.Before the year of completion, under the percentage of completion method, the year-end balance of the Construction in Progress account equal to: A. Cost incurred to date B. Cost incurred this year C. Cost incurred to date plus gross profit earned to date D. Gross profit earned to date
- In the first year of construction of a building project, the long-term construction company recognized gross loss for the year ended under the percentage of completion method. Which of the following statements will be certain? I. The construction revenue for the year is equal to ending balance of construction in progress. II. The ending balance of construction in progress is equal to ending balance of progress billing. III. The ending balance of construction in progress under cost method will be the same to the ending balance of construction in progress under percentage of completion method. IV. The cost of sales for the year is equal to ending balance of progress billing. a. I and III. b. Il only. c. II only. d. I, II and III.The cost of installing new equipment would be debited to which of the following accounts? Oa. Land Improvements Ob. Buildings Oc. Repairs and Maintenance Expense Od. Machinery and EquipmentAt the end of Year 1, how much is the balance of the assets account Production-in-Progress if WW Guy uses the percentage of completion method? see the options in attached screenshot.
- Which two of the costs on the invoice for a new company car would be classified as expenditure charged to profit or loss Road tax Number plates Maintenance contract Delivery costExplain the accounting treatment required when a change is made to the estimated service life of equipment.Annuel maintenance costs related to its machinery, $71,400 would be an expense in the period occured or would be capitalized and depreciated over the useful life of the asset?
- The following would affect the net income on the last year of the useful life of a long-lived asset with a related dismantling cost, except a.) Salvage value of the long-lived asset b.) Interest expense on the decommissioning liability c.) Depreciation of the long-lived asset d.) Gain or loss on the settlement of decommissioning liabilityWhich of the following pertaining to ordinary repairs is false? Multiple Choice They include activities such as cleaning, lubricating, and changing oil. They are treated as expenses. They extend the useful life of an asset beyond its original estimate by several years. They are expenditures to keep an asset in good operating condition. Their costs are reported as expenses on the current-period income statement.When writing journal entries for recording assets, what is the end result in the account: Group of answer choices Aggregate cost of the asset Cost, net of preparation costs. Proceeds paid to employees Only the net depreciable costs