Cost of a Fixed Asset Mist City Car Wash purchased a new brushless car-washing machine for one of its bays. The machine cost $33,700. 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.
Cost of a Fixed Asset Mist City Car Wash purchased a new brushless car-washing machine for one of its bays. The machine cost $33,700. 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.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 69APSA: A Cost of a Fixed Asset Mist City Car Wash purchased a new brushless car-washing machine for one of...
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