Rizio Company purchases a machine for $12,300, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and tookthe $246 discount. Transportation costs of $278 were paid by Rizio. The machine required mounting and power connections costing$850. Another $401 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, themachine was damaged and $330 worth of repairs were made.Complete the below table to calculate the cost recorded for this machine. Equipment:Invoice price of machineLess: DiscountNet purchase priceTransportationAssemblyMounting and power connectionsMaterials used in adjustingTotal cost to be recorded$12,300(123) X12,177278850 x40140$ 13,746

Name: Rizio Company purchases a machine for $12,300, terms 2/10, n/60, FOB
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Description: Rizio Company purchases a machine for $12,300, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and tookthe $246 discount. Transportation costs of $278 were paid by Rizio. The machine required mounting and power connection

Introduction: The total cost formula is used to total the variable and fixed costs of a batch. This…

Business

Accounting

Equipment: Invoice price of machine Less: Discount Net purchase price Transportation Assembly Mounting and power connections Materials used in adjusting Total cost to be recorded $ $ 12,300 (123) X 12,177 278 850 X 401 X 40 13,746

Equipment: Invoice price of machine Less: Discount Net purchase price Transportation Assembly Mounting and power connections Materials used in adjusting Total cost to be recorded $ $ 12,300 (123) X 12,177 278 850 X 401 X 40 13,746

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

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