Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 10, Problem 1QS
To determine
Ascertain the total recorded cost of the automatic scorekeeping equipment.
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A company purchased a special purpose machine on August 1st of the previous
year. It was installed and ready to run on January 1st of the current year. The
following costs were incurred in the purchase and installation of the machine:
Invoice price $1,200,000
Freight costs 6,000
Installation costs 64,000
Electrical and power connections 32,000
Repairs to correct damage during uncrating 12,000
Costs to adjust machine to appropriate specifications 56,000
Costs of spare parts for future use 108,000
Sales tax 70,500
Cost of…
Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $155,00O. The electrical work required for the
installation costs $16,275. Additional costs are $3,255 for delivery and $11,170 for sales tax. During the installation, a component of the
equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $1,505.
What is the total recorded cost of the automatic scorekeeping equipment?
Included/
Excluded
Total cost
DR Machinery
DR Expense
Invoice cost
155,000
Electrical work required for installation
16,275
Delivery costs
3,255
Sales tax
11,170
Repair costs
1,505
Total
2$
187,205
Cost of a Fixed Asset
Mist City Car Wash purchased a new brushless car-washing machine for one of its bays. The machine cost $32,600. Mist City borrowed the purchase price from its bank
on a 1-year, 12% note payable. Mist City paid $500 to have the machine transported to its place of business and an additional $200 in shipping insurance. Mist City
incurred the following costs as a part of the installation:
Plumbing
Electrical
Water (for testing the machine)
Soap (for testing the machine)
$2,700
1,640
35
18
During the testing process, one of the motors became defective when soap and water entered the motor because its cover had not been installed properly by Mist City's
employees. The motor was replaced at a cost of $450.
Required:
Compute the cost of the car-washing machine.
Chapter 10 Solutions
Principles of Financial Accounting.
Ch. 10 - A company paid 326,000 for property that included...Ch. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQ
Ch. 10 - Why is the Modified Accelerated Cost Recovery...Ch. 10 - Prob. 7DQCh. 10 - Identify events that might lead to disposal of a...Ch. 10 - Prob. 9DQCh. 10 - Is the declining-balance method an acceptable way...Ch. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 15DQCh. 10 - APPLE On its recent balance sheet in Appendix A,...Ch. 10 - Prob. 17DQCh. 10 - Prob. 18DQCh. 10 - Prob. 19DQCh. 10 - Prob. 20DQCh. 10 - Prob. 1QSCh. 10 - Prob. 2QSCh. 10 - Prob. 3QSCh. 10 - Prob. 4QSCh. 10 - Prob. 5QSCh. 10 - Prob. 6QSCh. 10 - On January 1, the Matthews Band pays 65,800 for...Ch. 10 - Prob. 8QSCh. 10 - Revenue and capital expenditures 1. Classify the...Ch. 10 - Disposal of assets Garcia Co. owns equipment that...Ch. 10 - Prob. 11QSCh. 10 - Prob. 12QSCh. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 15QSCh. 10 - Caleb Co. owns a machine that had cost 42,400 with...Ch. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - NewTech purchases computer equipment for 154,000...Ch. 10 - Double-declining-balance depreciation In early...Ch. 10 - Straight-line depreciation and income effects P1...Ch. 10 - Double-declining-balance depreciation P1 Tory...Ch. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Revising depreciation C2 Apex Fitness Club uses...Ch. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Montana Mining Co. pays 3,721,000 for an ore...Ch. 10 - Milano Gallery purchases the copyright on a...Ch. 10 - Prob. 20ECh. 10 - Prob. 21ECh. 10 - Lok Co. reports net sales of 5,856,480 for Year 2...Ch. 10 - Prob. 23ECh. 10 - Prob. 24ECh. 10 - Prob. 1APCh. 10 - Prob. 2APCh. 10 - Prob. 3APCh. 10 - Prob. 4APCh. 10 - Yoshi Company completed the following transactions...Ch. 10 - Onslow Co. purchased a used machine for 178,000...Ch. 10 - On July 23 of the current year, Dakota Mining Co....Ch. 10 - On January 1, Falk Company signed a contract to...Ch. 10 - Nagy Company makes a lump-sum purchase of several...Ch. 10 - Prob. 2BPCh. 10 - Prob. 3BPCh. 10 - Prob. 4BPCh. 10 - Prob. 5BPCh. 10 - On January 1, Walker purchased a used machine for...Ch. 10 - Prob. 7BPCh. 10 - Prob. 8BPCh. 10 - Prob. 10SPCh. 10 - Prob. 1AACh. 10 - Prob. 2AACh. 10 - Prob. 3AACh. 10 - Prob. 1BTNCh. 10 - Prob. 5BTN
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