Easy Bhd recently purchased a new lensmeter to measure a patient's refractive error, and to determine the appropriate prescription to be used with eyeglasses and contact lenses. The following information refers to the purchase and installation of this equipment. (i) The list price of the equipment was RM46,800. However, Easy Bhd qualified for a discount of RM 1,800. It paid RM25,000 in cash for the equipment and the balance would be paid in 12 months. The discount rate used was 9 per cent. (ii) In addition to (i) above, Easy Bhd paid import duties of RM2,250. (iii) Freight charges for delivery of the equipment totalled RM500. (iv) Installation costs related to the equipment amounted to RM2,500. (v) As soon as the equipment was installed, Easy Bhd paid RM2,000 to print brochures featuring the company's new facilities. Required: (a) Make a general statement summarizing the nature of the expenditure that forms the cost of the equipment. (b) Explain which items above should be included as the total cost of equipment. (c) Discuss the proper accounting treatment of those items that are not included in the cost of equipment. the journal entries to

Easy Bhd recently purchased a new lensmeter to measure a patient's refractive error, and to determine the appropriate prescription to be used with eyeglasses and contact lenses. The following information refers to the purchase and installation of this equipment. (i) The list price of the equipment was RM46,800. However, Easy Bhd qualified for a discount of RM 1,800. It paid RM25,000 in cash for the equipment and the balance would be paid in 12 months. The discount rate used was 9 per cent. (ii) In addition to (i) above, Easy Bhd paid import duties of RM2,250. (iii) Freight charges for delivery of the equipment totalled RM500. (iv) Installation costs related to the equipment amounted to RM2,500. (v) As soon as the equipment was installed, Easy Bhd paid RM2,000 to print brochures featuring the company's new facilities. Required: (a) Make a general statement summarizing the nature of the expenditure that forms the cost of the equipment. (b) Explain which items above should be included as the total cost of equipment. (c) Discuss the proper accounting treatment of those items that are not included in the cost of equipment. the journal entries to

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 39P

See similar textbooks

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