Gently Laser Clinic purchased laser equipment for $8,500, paid $2,250 down, with the remainder to be paid later. The correct entry would be
Q: Land is given to contractor and Contractor started to build an Office Building and first year’s…
A: Journal entry is the process of recording the business transactions in the books of accounts for the…
Q: Speed-ee Delivery is purchasing a new truck for its fleet. It pays the following costs at the time…
A: Property, plant, and equipment are tangible fixed assets. These are depreciable assets which means…
Q: [The following information applies to the questions displayed below.] On October 7 of year 1, Javier…
A: The total cost of the purchase was $1,304,500 $242,000 was allocated to the basis of the land…
Q: Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On…
A: The cost of fixed ads includes the acquisition cost, freight cost, installation charges or other…
Q: Jorgea Company sold office equipment that had a book value of $12,000 for $16,000. The office…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: A building with business offices, a reception area, and numerous small diagnosis rooms is placed in…
A: The Modified Accelerated Cost Recovery System (MACRS) is the depreciation method authorised by the…
Q: Blossom Clinic purchases land for $450000 cash. The clinic assumes $4000 in property taxes due on…
A: Cost of asset is purchase price and all other costs required to make the asset ready to use As to…
Q: On March 31, Higgins Repair Service extended an offer of $415,000 for land that had been priced for…
A: Concept of cost: Assets of the organisation should be recorded at the acquisition cost or the…
Q: The following expenditures were incurred by the Keng, Inc. in 2019: Cost of land P4,500,000…
A: The question is based on the concept of Accounting Standard on PPE.
Q: Previn Brothers Inc. purchased a piece of land at a cost of $ 27,000. Closing costs were $ 1,400. An…
A: Information Provided: Cost of piece of land = $27,000 Closing costs = $1400 Removal costs = $10,200
Q: Emily purchased a building to store inventory for her business. The purchase price was $630,000.…
A:
Q: . Jay Hawk, maintenance supervisor for Boston Insurance Co., has purchased a riding lawnmower and…
A: Straight-line depreciation method: The depreciation method which assumes that the consumption of…
Q: On February 3, Clairemont Repair Service extended an offer of $360,000 for land that had been priced…
A: Cost concept: As per the cost concept, the assets of the companies are valued at their purchase…
Q: Alpine Clothing purchased land, paying $125,000 cash and signing a $270,000 note payable. In…
A:
Q: At what value should the land be recorded in McCade Repair Service's records?
A: McCade Repair Service accepted the counter offer for $72,000 and purchased the land. This is the…
Q: On 1/1/2022 - Rami purchased a new machine paying $30,000 cash along with voyage insurance $1000,…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: On February 3, Easy Repair Service extended an offer of $133,000 for land that had been priced for…
A: According to accounting standards and laws, the cost of the land is the total of all the expenses…
Q: Sheffield Landscaping began construction of a new plant on December 1,2020. On this date, the…
A: An asset is not just valued at the amount paid to acquire it but all the expenses that incur with…
Q: The following payments and receipts are related to land, land improvements, and buildings acquired…
A: 1) Identify each item by letter and the list the amounts in columnar form.
Q: On June 25, AAA Repair Service extended an offer of $76,000 for land that had been priced for sale…
A: As per historical cost principle, all costs which are incurred for purchase of asset and make the…
Q: Adama Company incurred the following costs. Indicate to which account Adama would debit each of the…
A: Cost / expenses which are directly related to the fixed asset should be capitalized otherwise…
Q: On January 1, Year 1, RandallI Moving Company paid $22,500 cash to purchase a truck. The truck was…
A: Solution: Annual depreciation = (cost - salvage value) / useful life = (22500 - 4700)/ 5 = $3,560…
Q: A building with an appraisal value of $133,629 is made available at an offer price of $158,926. The…
A: The cost basis recorded in the buyer's accounting records to recognize this purchase is $111820…
Q: On January 19, Ivanova Inc. buys a land that includes a building and a variety of land improvements…
A: Appraised value Percent of the total appraised value x Total cost of aquisition =Approtioned…
Q: On October 7 of year 1, Javier purchased a building, including the land it was on, to assemble his…
A: Depreciation expense Year 1 8084 Year 2 38,633 Year 3 38,633
Q: Colors Company purchased a piece of machinery for $4,000. The company paid $1,500 at the time of the…
A: Journal entries recording is one of the initial step of accounting process, under which atleast one…
Q: On January 1O, GNS Repair Service extended an offer of P6,000,000 for land located at De Venecia…
A: Cost Concept: Under Cost concept, that is part of GAAP, assets should always be recorded at their…
Q: On December 5, 2020, Kara Corp purchased a machinery from a dealer paying P2,310,000 cash. In…
A: The cost of fixed assets are recorded after making adjustments for transport cost, or other…
Q: Magical Manufacturing Company purchased land, a building, and some vehicles on January 7, 2021, for…
A: In case of assets purchased together i.e. multiple assets at a single price, then cost of each asset…
Q: Rolling Hills Golf Course obtains revenue from Green Fees and also from a contract with a…
A: Here we will prepare classified Balance Sheet and then we will calculate Current Ratio…
Q: On March 5, Y1, Torta Electronics purchased a patent for a Stovephone app from another business for…
A: Intangible assets are amortized over a period of time and such expense per year is calculated by…
Q: On June 25, McCade Repair Service extended an offer of $109,000 for land that had been priced for…
A: Historical cost refers to the original cost of the item or fixed asset
Q: A contractor imported a bulldozer for his job paying P 260,000 to the manufacturer. Freight and…
A: note dear student as per the Q&A guideline we are required to answer the first three subparts…
Q: Wildhorse Co. purchased equipment on January 1 at a list price of $155000, with credit terms 3/10,…
A: Compute the total cost of new equipment:
Q: On January 1, Duane Company purchases land at a cost of $125,000. Duane incurs costs of $2,000 for…
A: Given: Cost of land = $ 125,000 Cost of closing fee = $ 2,000 Clearing cost = $ 7,000
Q: On June 25, Obermayer Repair Service extended an offer of $90,000 for land that had been priced for…
A: The answer is - $98,000 i.e. the seller's counter offer. This is the price that was paid by Easy…
Q: A company bought a land for $5m. One year later, a buyer is willing to pay $4m for the land. The…
A: Meaning of Impairment Loss Impairment loss is the loss if the value of an asset decreases below its…
Q: Pharoah Clinic purchases land for $490000 cash. The clinic assumes $5300 in property taxes due on…
A: Acquisition cost of any fixed assets will be the total cost incurred to bring the fixed assets in…
Q: Ace Lumber Co. purchased a truck and had the following outlays. How much is the cost of the truck?…
A: Cost of the truck = purchase price + sales tax + preparation and delivery + insurance during…
Q: HnH Solutions acquired a machine by making the following payments: Net cash price Rs. 116,000…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: M/s. Green Channel purchased a second-hand machine on 1st January, 2015 for 1,60,000. Overhauling…
A: Working Note - Book Value of Machine (Straight Line Method) Particular Machine I…
Q: On July 1, 2022, Kim Seok-jin Company purchased a machinery from a dealer paying P2,310,000 cash. In…
A: The historical cost of the machinery include purchase cost & all expenses incurred like freight,…
Q: (The following information appliles to the questions displayed below.) At the beginning of the year,…
A: Depreciation is the non-cash expense which is to be reported in the books to record the regular…
Q: Determining the cost of an asset Highland Clothing purchased land, paying $96,000 cash and signing a…
A:
Q: [The following information applies to the questions displayed below.] On October 7 of year 1, Javier…
A: The modified accelerated cost recovery system is that depreciation system according to which…
Q: On October 29th, Raider Red acquired a printer and office chairs for $1,000. The printer has a…
A: Historical cost of an asset is the price actually paid for the purchase of asset . An assets…
Q: On February 3, Gallatin Repair Service extended an offer of $152,000 for land that had been priced…
A: Introduction: The land is the fixed asset for the company which does not attach any amount of…
Gently Laser Clinic purchased laser equipment for $8,500, paid $2,250 down, with the remainder to be paid later. The correct entry would be
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be a. Cash 2,250 Accounts Payable 6,250 Equipment 8,500 b. Equipment 2,250 Cash 2,250 c. Equipment 8,500 Accounts Payable 6,250 Cash 2,250 d. Equipment Expense 8,500 Accounts Payable 2,250 Cash 6,250Gently Laser Clinic purchased laser equipment for $6,516 and paid $678 down, with the remainder to be paid later. The correct entry would be a. Equipment Expense 6,516 Accounts Payable 678 Cash 5,838 b. Cash 678 Accounts Payable 5,838 Equipment 6,516 c. Cash 678 Equipment 678 d. Equipment 678 Cash 678 e. Equipment 6,516 Accounts Payable 5,838 Cash 678A new medical practice purchases computer equipment that cost $15,000 to be used for medical billing. In addition, the practice purchases billing software that cost $5,000. Both the computer equipment and the software are expected to have 4-year useful lives and no salvage value. Calculate the 3 years of depreciation, using SL straight line.
- Explain how you would decide whether to record each of the following expenditures as an asset or an expense.Assume all items are material.(a) Legal fees paid in connection with the purchase of land are $1,500.(b) Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000.(c) A meat market purchases a meat-grinding machine at a cost of $3,500.(d) On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next5 months.(e) Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the business.(f) Alvarez’s Florists pays wages of $2,100 for the month to an employee who serves as driver of their delivery truck.Gently Laser Clinic purchased laser equipment for $4,788 and paid $608 down, with the remainder to be paid later. The correct entry would be a. Cash$608 Accounts Payable$4,180 Equipment$4,788 b. Equipment$608 Cash$608 c. Equipment$4,788 Accounts Payable$4,180 Cash$608 d. Equipment Expense$4,788 Accounts Payable$608 Cash$4,180Stilton Ltd purchases a new delivery truck for $80,000 . The logo of the company is painted on the side of the truck for $1,000 . The truck registration is $500 , and a 12 -month accident insurance policy is $1,500 . The truck undergoes safety testing for $660 . What does Stilton Ltd record as the cost of the new truck? Select one: a. $81,660 . b. $80,000 . c. $83,060 . d. $81,000
- Rix Company sells home appliances and provides installation and service for its customers. On April 1, 2019, a customer purchased a dishwasher that Rix normally sells for 1,000. In addition, the customer purchased the installation service and a 3-year service contract, with stand-alone selling prices of 200 and 400, respectively. Because the customer purchased all three items as a bundle, Rix charged the customer 1,400. Required: 1. How should the transaction price be allocated among the products? 2. Prepare the journal entries to recognize revenue related to each product in 2019.For each of the following transactions, state whether the cost would be capitalized (C) or recorded as an expense (E). A. Purchased a machine, $100,000; gave long-term note B. Paid $600 for ordinary repairs C. Purchased a patent for $45,300 cash D. Paid $200,000 cash for addition to old building E. Paid $20,000 for monthly salaries F. Paid $250 for routine maintenance G. Paid $16,000 for major repairsThe following costs were incurred to purchase a machine: Purchase price 50,000 Transportation costs 800 Insurance during transportation 100 Interest on loan during first month of assets use 250 Determine the acquisition cost.
- Faraday Electronic Service repairs stereos and DVD players. During the year, Faraday engaged in the following activities: On September 1, Faraday paid Wausau Insurance $4,860 for its liability insurance for the next 12 months. The full amount of the prepayment was debited to prepaid insurance. At December 31, Faraday estimates that $1,520 of utility costs are unrecorded and unpaid. Faraday rents its testing equipment from JVC. Equipment rent in the amount of $1,440 is unpaid and unrecorded at December 31. In late October, Faraday agreed to become the sponsor for the sports segment of the evening news program on a local television station. The station billed Faraday $4,350 for 3 months' sponsorship—November, December, and January—in advance. When these payments were made, Faraday debited prepaid advertising. At December 31, 2 months’ advertising has been used and 1 month remains unused. 1. Prepare adjusting entries at December 31 for these four activities. If an amount box…Gently Laser Clinic purchased laser equipment for $4,182 and paid $713 down, with the remainder to be paid later. The correct entry would be Equipment$4,182 Accounts Payable$3,469 Cash$713 Equipment$713 Cash$713 Equipment Expense$4,182 Accounts Payable$713 Cash$3,469 Cash$713 Accounts Payable$3,469 Equipment$4,182 Cash$713 Equipment$713ABC Company purchased a new printing machine on December 1 at an invoice price of P4,000,000 with terms 2/10, n/30. On December 15, Cabiao paid the required amount for the machine. The installation costs were P50,000 and the employees received training on how to use the machine, at a cost of P20,000. Before using the machine to print customers’ orders, a test was undertaken and the paper and ink cost P5,000. What amount should be capitalized as cost of the machine? A. 3,995,000 B. 3,970,000 C. 3,975,000 D. 4,075,000
