On October 9, Wonder Inflatables Co. paid $1,150 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures.
Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in…
A: Solution: Cost of land to be reported = $377,305 Cost of land = cash paid to acquire land +…
Q: An air-conditioning system is installed in a building under construction. Thebill for installation…
A: An invoice amount includes costs and taxes.
Q: Oki Company pays $264,000 for equipment expected to last four years and have a $29,000 salvage…
A: Given information is: Oki Company pays $264,000 for equipment expected to last four years and have…
Q: Jay Hawk, maintenance supervisor for Boston InsuranceCo., has purchased a riding lawnmower and…
A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…
Q: Capital and Revenue Expenditures On April 29, GTS Co. paid $1,570 to repair the transmission on one…
A: Capital expenditures are those expenditures that are incurred for acquiring, replacing or modifying…
Q: Queer Company provided the following charges to the repair and maintenance account: Service contract…
A: NOTES : 1. INITIAL DESIGN FEE IS NOT YET RECORDED SINCE THERE IS NO EXTENSION OF THE OFFICE BUILDING…
Q: Manny Company uses many kinds of machines in its operations. The following information relates to a…
A: Any cost that will have economic life in future and last for more than a year should be capitalized.…
Q: At the beginning of the year, Grillo Industries bought three used machines from Freeman…
A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…
Q: Indicate which of the following costs should be expensed when incurred. a. $13,000 paid to…
A:
Q: Cala Manufacturing purchases land for $373,000 as part of its plans to build a new plant. The…
A: Land cost = Purchase price + Cost of tear down the old building + Cost to fill and level the lot =…
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 August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air…
A: Capital expenditure: It refers to the amount spent on acquiring, maintaining, and improving the…
Q: journal entries for each expenditure:
A: As per IAS 16 Significant expenditure incurred in order to generate future economic benefit of the…
Q: A company paid on April 29 RM1660 to install a hydraulic lift and 33 for an air filter for one of…
A: Journal entries are an accounting transactions of the business and it has an debit and credit to its…
Q: [The following information applies to the questions displayed below.] Ramirez Company installs a…
A: With the passage of time, the value of machinery goes on decreasing due to normal wear or tear,…
Q: Several years ago, Health Services acquired a helicopter for use in emergency situations. Health…
A:
Q: Rex's Reclaimers entered into a contract with Dan's Demolition to manage the processing of recycled…
A: a)Determine the costs that should be capitalized Commission cost of $2,000 related to obtaining…
Q: During the year just ended, Morton Company made the following expenditures relating to its plant…
A: Any amount spent on repairs and maintenance that does not add/increase the value of the asset should…
Q: Charles Corp. purchased a new machine for its factory. The following lists shows the various…
A: Capitalized cost of the machine Particulars Amount Base purchase price $40,000 Sales tax…
Q: On January 1, Walker purchased a used machine for $150,000. On January 4, Walker paid $3,510 to wire…
A: Straight line method depreciation: = ( cost of asset - salvage value ) / number of useful years…
Q: Sellem, Inc. is disposing of office furniture it has had for 2 ½ years. The cost of the furniture…
A: Refer step1 & step2 for complete understanding
Q: total amount should be charged to repairs and maintenance
A: We know that as per IAS 16 vis a vis IFRS 16, Property Plant and Equipment Repairs and maintenance…
Q: Desert State University installed a HD video board with an invoice price of $5,000,000 in its…
A: Cost refers to the amount incurred for acquisition of a good or service having value.
Q: McCrane Motor Company manufactures automobiles. During September 2020, the company purchased 9,000…
A: Raw material Ending Quantity = Raw material Purchased Quantity - Raw material Used Quantity Raw…
Q: During June 2014, Green Grocer Inc. decided to build a new warehouse and purchased land for…
A: Costs Involved Particulars Amount $ Purchase cost of land 850000 Excavation cost 72000…
Q: A machine was purchased for $7,000, terms 2/10, n/60, FOB vendor's factory. The invoice was paid…
A: Given that, Cost of machine = $7,000 Trade discount = $7,000 * 2% = $140 Freight charges = $175…
Q: Cala Manufacturing purchases land for $327,000 as part of its plans to build a new plant. The…
A: The cost of an asset includes all the cost that makes the assets ready to use. So the cost of tear…
Q: capital and Revenue Expenditures On April 29, Rocket Co. paid $1,760 to repair the transmission on…
A: All expenditure incurred by the organization to buy machines, or expenditure on fixed assets, This…
Q: The following information relates to a machine constructed by ABC Company: Cost of materials to…
A: When machinery is built inside an organization, it is recorded at the value that includes all of the…
Q: Miller Corp. purchased a new machine for its factory. The following lists shows the various…
A: Note: Insurance costs incurred for the transit to the destination is only capitalized to the assets.…
Q: Rona Company provided the following charges to the “repair and maintenance account”. Service…
A: Notes: Initial design fee is not yet recorded since there is no extension of the office building…
Q: The following table lists all costs of quality incurred by Sam’s Surf Shop last year. What was Sam’s…
A: Appraisal cost: It can be defined as the expense incurred by the business to ensure that the…
Q: Quality Move Company made the following expenditures on one of its delivery trucks:Mar. 20. Replaced…
A: Capital expenditure: It refers to the amount spent on acquiring, maintaining, and improving the…
Q: capitalized as cost of the machine
A: The cost of a fixed asset includes the sum of amounts of money spent in bringing the asset into…
Q: On August 1, 20x1, ABC Co. received 1,800,000 grant from the government to aid in ABC Co.’s clean-up…
A: As per our protocol we are supposed to answer first three sub-parts and you have asked two different…
Q: Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: Capital Expenditures and Revenue Expenditures Quality Move Company made the following expenditures…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Oki Company pays $283,500 for equipment expected to last four years and have a $30,000 salvage…
A: Any expenditure that increases the performance or life of the equipment should be capitalized (i.e.,…
Q: P Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10,…
A: Cost of assets includes purchase price , taxes (if credit not available) , installation charges or…
Q: On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing…
A: 1.
Q: On January 2, 2018, Quick Delivery Service purchased a truck at a cost of $95,000. Before placing…
A: Formula: Straight line depreciation = ( cost of asset - salvage value ) / useful life of asset.
Q: On April 15, Compton Co. paid $1,300 to upgrade a delivery truck and $55 for an oil change.…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Gerald paid $1730 to install a lift which was hydraulic in nature and an air filter which costs $88…
A: Transactions of an organisation will be recorded initially through journal entries in the books of…
Q: Capital and Revenue Expenditures On April 29, GTS Co. paid $3,000 to install a hydraulic lift and…
A: Journal EntryJournal Entry is refers to the recording of monetary transactions which are related to…
Q: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of $65,000.…
A: Depreciation It is a systematic allocation of the cost of an asset which is used in a business.…
Q: Rex's Reclaimers entered into a contract with Dan's Demolition to manage the processing of recycled…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Family Services, a small social service nonprofit agency, began operations on January 1, 20X1, with…
A: 1. Expenses - Expenses are the recurring in nature. To earn revenue company incurred some expense…
an air filter for one of its delivery trucks.
filter expenditures.
Step by step
Solved in 2 steps
- On April 29, Welllington Co. paid $3,230 to install a hydraulic lift and $46 for an air filter for one of its delivery trucks. Journalize the entries for the new lift. Journalize the entry for air filter expenditures.Quality Move Company made the following expenditures on one of its delivery trucks:Mar. 20. Replaced the transmission at a cost of $1,890.June 11. Paid $1,350 for installation of a hydraulic lift.Nov. 30. Paid $55 to change the oil and air filter.Prepare journal entries for each expenditure.Capital and Revenue Expenditures On April 29, GTS Co. paid $3,000 to install a hydraulic lift and $32 for an air filter for one of its delivery trucks. Journalize the entries for the new lift. April 29 Journalize the entry for air filter expenditures.
- A company paid on April 29 RM1660 to install a hydraulic lift and 33 for an air filter for one of its delivery trucks. Prepare journal entries for the new lift.On April 15, Compton Co. paid $2,850 to upgrade a delivery truck and $75 for an oil change. Journalize the entries for the upgrade to delivery truck and oil change expenditures. If an amount box does not require an entry, leave it blank.Quality Freight Company made the following expenditures on one of its delivery trucks: Marc 20. Replaced the transmission at a cost of $1,890 June 11. Paid $1,350 for installation of a hydraulic lift Nov. 30. Paid $55 to change the oil and filter As the accountant of Quality Freight prepare journal entries for each expenditure:
- Bill’s Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,550, and the book value prior to the repair was $6,500. In addition, the company spent $12,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $85,000 and related Accumulated Depreciation account at $32,000. Required After the work was completed, what book value should appear on the balance sheet for the tow truck and the building? TOW TRUCK: Building:Houston’s Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,010, and the book value prior to the repair was $4,750. In addition, the company spent $6,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $89,300 and related Accumulated Depreciation account at $44,300. After the work was completed, what book value should Houston’s report on the balance sheet for the shredding machine and the building? Book Value Shreddding Machine BuildingA company purchased a special purpose machine on August 1st of the previous year. It was installed and ready to run on January 1st of the current year. The following costs were incurred in the purchase and installation of the machine: Invoice price $1,200,000 Freight costs 6,000 Installation costs 64,000 Electrical and power connections 32,000 Repairs to correct damage during uncrating 12,000 Costs to adjust machine to appropriate specifications 56,000 Costs of spare parts for future use 108,000 Sales tax 70,500 Cost of…
- Rona Company provided the following charges to the “repair and maintenance account”. Service contract on office equipment 100,000 Initial design fee for proposed extension of office building 150,000 New condenser for central air conditioning unit 10,000 Purchase of executive chairs and desks 200,000 Purchase of storm windows and screens and their installation all office windows 500,000 Sealing of roof leaks in production area 80,000 Replacement of door to production area 50,000 Installation of automatic door-opening system 200,000 Overhead crane for assembly department to speed up production 350,000 Replacement of broken gear on machine , 60,000 what total amount of expenditure should be capitalized? a. 1,500,000 b.1,410,000 c 1,400,000 d. 1,200,000During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?