New Office Equipment 1. List price: $35,600; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $850. 3. Installation: $570. 4. Cost to repair damage during unloading: $479. 5. Routine maintenance cost after eight months: $230. Basket Purchase of Copier, Computer, and Scanner for $46,500 with Fair Market Values 1. Copier, $24,640. 2. Computer, $9,520. 3. Scanner, $21,840. Land for New Warehouse with an Old Building Tom Down 1. Purchase price, $76,600. 2. Demolition of building, $4,830. 3. 4. 5. Construction of new building, $282,000. Lumber sold from old building, $2,380. Grading in preparation for new building, $7,400. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts. Asset Office equipment Basket purchase: Copier Computer Scanner Total cost to be capitalized Land and building: Cost of land Construction costs Total cost to be capitalized Allocated Costs Total

New Office Equipment 1. List price: $35,600; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $850. 3. Installation: $570. 4. Cost to repair damage during unloading: $479. 5. Routine maintenance cost after eight months: $230. Basket Purchase of Copier, Computer, and Scanner for $46,500 with Fair Market Values 1. Copier, $24,640. 2. Computer, $9,520. 3. Scanner, $21,840. Land for New Warehouse with an Old Building Tom Down 1. Purchase price, $76,600. 2. Demolition of building, $4,830. 3. 4. 5. Construction of new building, $282,000. Lumber sold from old building, $2,380. Grading in preparation for new building, $7,400. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts. Asset Office equipment Basket purchase: Copier Computer Scanner Total cost to be capitalized Land and building: Cost of land Construction costs Total cost to be capitalized Allocated Costs Total

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9EB: Ronson recently purchased a new boat to help ship product overseas. The following information is...

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The 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.
Ronson recently purchased a new boat to help ship product overseas. The following information is related to that purchase: purchase price $4,500,000 cost to bring boat to production facility $15,000 yearly insurance cost $12,000 pays annual maintenance cost of $22,000 received a 10% discount on sales price Determine the acquisition cost of the boat and record the journal entry needed.
New Office Equipment List price: $60,000; terms: 2/10, n/30; paid within the discount period. Transportation-in: $1,500. Installation: $2,500. Cost to repair damage during unloading: $650. Routine maintenance cost after eight months: $350. determine the amount of cost to be capitalized in the asset account office equipment: ?
DEF Company consigned 1,000 video players costing P900 per unit and retailing for P1,500 per unit to UUU on November 1, 2021. DEF paid P15,000 for the freight. For the month of November, the consignee sold 700 units. On December DEF ordered safety device on players which have not been sold. The cost of this alteration was: parts from inventories, P6,000 with a freight of P5,000. On December 20, DEF Company sent a mechanic to UUU to install safety devices on players. The cost of for labor, P5,000 which was paid by the consignee. DEF Company, thereafter, increased the unit retail price to P1,750 for the unsold players. On December 31, UUU remitted P1,021,750 to DEF Company in full settlement to date after deducting a commission of 15% of selling price on each player sold and P14,500 for delivering the players sold. Compute the consignment income to be reported by the consignor
DEF Company consigned 1,000 video players costing P900 per unit and retailing for P1,500 per unit to UUU on November 1, 2021. DEF paid P15,000 for the freight. For the month of November, the consignee sold 700 units. On December DEF ordered safety device on players which have not been sold. The cost of this alteration was: parts from inventories, P6,000 with a freight of P5,000. On December 20, DEF Company sent a mechanic to UU0 to install safety devices on players. The cost of for labor, P5,000 which was paid by the consignee. DEF Company, thereafter, increased the unit retail price to P1,750 for the unsold players. On December 31, UUU remitted P1,021,750 to DEF Company in full settlement to date after deducting a commission of 15% of selling price on each player sold and P14,500 for delivering the players sold. Compute the consignment income to be reported by the consignor
On March 1, Bartholomew Company purchased a new stamping machine with a list price of $88,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $3100; sales tax paid, $6,720, installation costs, $1,900; routine maintenance during the first month of operation, $3,000. The cost recorded for the machine was:
Rizio Company purchases a machine for $13,800, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $276 discount. Transportation costs of $312 were paid by Rizio. The machine required mounting and power connections costing $954. Another $450 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $285 worth of repairs were made.
Exchanged a display case put in service on 1 April, 2 years prior (original cost $21000, $0 salvage value) for a new display case, list price $25000; terms FOB, destination. The trade-in allowance was $18000 and the balance due of $7000 was paid in cash. Freight costs are $65 and insurance in transit was $45. Display cases are classified as Store and Office Equipment. The estimated useful life of both old and new cases is 10 years. Record this transaction in the GJ. Hint: the cost of the new equipment is $25000.
Rizio Co. purchases a machine for $12,500, terms 2∕10, n∕60, FOB shipping point. Rizio paid within the discount period and took the $250 discount. Transportation costs of $360 were paid by Rizio. The machine required mounting and power connections costing $895. Another $475 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $180 worth of repairs were made. Compute the cost recorded for this machine.
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $35,300; terms: 2/10 n/30; paid within discount period. Transportation-in: $790. Installation: $570. Cost to repair damage during unloading: $660. Routine maintenance cost after eight months: $240. Basket Purchase of Copier, Computer, and Scanner for $46,400 with Fair Market Values Copier, $23,478. Computer, $8,944. Scanner, $23,478. Land for New Warehouse with an Old Building Torn Down Purchase price, $77,500. Demolition of building, $4,540. Lumber sold from old building, $1,570. Grading in preparation for new building, $9,600. Construction of new building, $235,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
Wildhorse Co. purchased equipment on January 1 at a list price of $155000, with credit terms 3/10, n/30. Payment was made within the discount period. Wildhorse paid $6500 sales tax on the equipment, and paid installation charges of $2100. Prior to installation, Wildhorse paid $3500 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?
A company purchased a 10-ton draw press at a cost of $181,000 with terms of 215/,n45./215,n45. Payment was made within the discount period. Shipping costs were $4,200, which included $230 for insurance in transit. Installation costs totaled $11,300, which included $4,800 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is: