A company purchased a commercial dishwasher by paying cash of $5,900. The dishwasher's fair value on the date of the purchase was $6,270. The company incurred $300 in transportation costs, $310 installation fees, and paid a $120 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher?
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A company purchased a commercial dishwasher by paying cash of $5,900. The dishwasher's fair value on the date of the purchase was $6,270. The company incurred $300 in transportation costs, $310 installation fees, and paid a $120 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher?
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- Bach Co., a VAT-registered business, acquired a piece of equipment for P224,000 on account. The purchase price is inclusive of 12% VAT. A P4,480 prompt payment discount is available on purchase, but Bach Co. opted not to take it. Bach Co. also incurred P20,000 cost of training the personnel who will be operating the equipment. Two months after the equipment was installed, Bach Co. decided to redeploy the equipment to another location. Bach Co. incurred P30,000 in the relocation and reinstallation. The cost of the equipment is a. 245,520. b. 230,000. c. 204,480. d. 195,520.In September, Morrison purchased a new piece of machinery that will be used to manufacture its top selling product. The purchase price of the machine was $2,215. In addition, Morrison also paid: freight, $200; installation, $570; testing , $900; and repairs due to mishandling, $300. Ignoring the depreciation expense, at what cost should the machinery be recorded on the balance sheet?Early in the fiscal year, The Beanery purchases a delivery vehicle for $40,000. At the end of the year, the machine has a fair value of $33,000. The company controller records depreciation expense of $7,000 for the year, the decline in the vehicle’s value. Explain why the controller’s approach to recording depreciation expense is not correct.
- Blossom Inc. recently replaced a piece of automatic equipment at a net price of $3,500, f.o.b. factory. The replacement was necessary because one of Blossom’s employees had accidentally backed his truck into Blossom’s original equipment and made it inoperable. Because of the accident, the equipment had no resale value to anyone and had to be scrapped. Blossom’s insurance policy provided for a replacement of its equipment and paid the price of the new equipment directly to the new equipment manufacturer, minus the deductible amount paid to the manufacturer by Blossom. The $3,500 that Blossom paid was the amount of the deductible that it has to pay on any single claim on its insurance policy. The new equipment represents the same value in use to Blossom. The used equipment had originally cost $64,000. It had a book value of $45,000 at the time of the accident and a second-hand market value of $50,000 before the accident, based on recent transactions involving similar equipment. Freight…Cottrell incurred the following costs related to its office building. You can assume all costs were paid in cash. (You do not need to record any depreciation related to the office building.) Installed a second air conditioner because it was determined that one air conditioning unit could not sufficiently cool the building, $7,000. Repaired and painted wall damage, $800. Replaced the building roof which was estimated to have a remaining life of less than 5 years, $37,000. The new metal roof should last a minimum of 25 years. Paid property taxes, $9,000.Hadley Company purchased an asset with a list price of $135580. Hadley paid $413 of transportation-in cost, $968 to train an employee to operate the equipment, and $637 to insure the asset against theft after it has been set up in the factory. The asset was purchased under terms 2/20/n30 and Hadley paid for the asset within the discount period. Based on this information, Hadley would capitalize the asset on its books at what dollar amount? $_______________
- On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in cash and giving a short-term note for $304,000. Legal fees paid were $1,705, delinquent taxes assumed were $13,000, and fees paid to remove an old building from the land were $22,800. Materials salvaged from the demolition of the building were sold for $5,200. A contractor was paid $1,048,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $32,000 in cash and giving a short-term note for $302,000. Legal fees paid were $1,580, delinquent taxes assumed were $15,200, and fees paid to remove an old building from the land were $19,100. Materials salvaged from the demolition of the building were sold for $5,000. A contractor was paid $1,015,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.fill in the blank 1 of 1$A truck owned and operated by Ward Company was involved in an accident with an auto driven by Stillman on January 12, 2020. Ward Company received notice on April 24, 2020 of a lawsuit for P800, 000 damages for a personal injury suffered by Stillman. Ward’s counsel believes it is reasonably possible that Stillman will be successful against the company for an estimated amount in the range between P100, 000 and P400, 000. No amount within this range is a better estimate of better potential damages than any other amount. It is expected that the lawsuit will be adjudicated in the latter part of 2021. What amount of loss should Ward accrue at December 31, 2020?
- On the 1 August 2017 Xu Ltd purchased steel cutting equipment for their manufacturing plant at a cost of $100,000 from Gao Ltd. It cost $1,500 to have the equipment delivered to the factory by Nurmalisa Transports and another $1,000 for installation and testing. The driver delivering the equipment was caught speeding and was fined $220. The driver also crashed into a roller door at Xu Ltd’s premises which cost Xu $600 to repair. Gao and Nurmalisa Transport were paid cash at the time of purchase. All costs are excluding 10% GST. At that time it was expected that the equipment will have an estimated useful life of 1,000,000 cuts and after that use it will be able to be sold for $10,000. From purchase up until the 30 June 2018 it was used to make 150,000 cuts while in 2019 it was used to make 190,000 cuts. On the 1 July 2019 Xu decided to revalue the equipment. At that time the fair value is considered to be $80,000 and it is estimated that it will be good for doing another 750,000 cuts…On January 1, 2011, Chicaga Furniture purchased a new delivery truck The company paid $65,000 for the truck, $12,000 for an annual insurance policy and $1,300 for a motor vehicle license. The truck has an estimated residual value of $5,000 at the end of its useful life and Chicago Furniture uses the double-declining-balance method for other similar assets. At what net amount will Chicago Furniture record the truck on its statement of financial position at December 31, 2011?A company purchased a machine at the cost of $759,600 on March 1 of year 1. On the same day, the business paid the shipping company $5,600 to deliver the machine and paid $14,500 to another business to install and test the new machine. The annual insurance policy for the new machine is $8,600. The company’s fiscal year end is November 30. The company’s accounting policy is to depreciate all machines using the double diminishing balance method. The machine has an expected useful lifespan of five-years and an estimated residual value of $30,000. However, the company discovered the machine did not meet its business requirements, so it sold the machine on September 1, year 3, for $156,500. Perform all your calculations to the nearest dollar. Show all your work. Instructions: Write you answers by hand, scan your working papers and upload to the link on the main page of the Moodle website as a PDF file. Show any calculations. Printing the problem information is permitted but only for…