Trinkle Company made several purchases of long-term assets during the year. The details of each purchaseare presented here.New Office Equipment1. List price: $42,600; terms: 2/10, n/30; paid within the discount period.2. Transportation-in: $880.3. Installation: $400.4. Cost to repair damage during unloading: $630.5. Routine maintenance cost after eight months: $150.Basket Purchase of Copier, Computer, and Scanner for $52,500 with Fair Market Values1. Copier, $23,421.2. Computer, $12,027.3. Scanner, $27,852.Land for New Warehouse with an Old Building Torn Down1. Purchase price, $83,800.2. Demolition of building, $4,760.3. Lumber sold from old building, $1,780.4. Grading in preparation for new building, $7,900.5. Construction of new building, $279,000. RequiredIn each of these cases, determine the amount of cost to be capitalized in the asset accounts.Office equipmentBasket purchase:AssetCopierComputerScannerTotal cost to be capitalizedLand and building:Cost of landConstruction costsTotal cost to be capitalizedAllocated Costs$$Total00

Cost allocation refers to the process which is used by the company to allocate the cost of product…

Answered: Required In each of these cases,…

Business

Accounting

Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

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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Question

Trinkle Company made several purchases of long-term assets during the year. The details of each purchase
are presented here.
New Office Equipment
1. List price: $42,600; terms: 2/10, n/30; paid within the discount period.
2. Transportation-in: $880.
3. Installation: $400.
4. Cost to repair damage during unloading: $630.
5. Routine maintenance cost after eight months: $150.
Basket Purchase of Copier, Computer, and Scanner for $52,500 with Fair Market Values
1. Copier, $23,421.
2. Computer, $12,027.
3. Scanner, $27,852.
Land for New Warehouse with an Old Building Torn Down
1. Purchase price, $83,800.
2. Demolition of building, $4,760.
3. Lumber sold from old building, $1,780.
4. Grading in preparation for new building, $7,900.
5. Construction of new building, $279,000.

Required
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
Office equipment
Basket purchase:
Asset
Copier
Computer
Scanner
Total cost to be capitalized
Land and building:
Cost of land
Construction costs
Total cost to be capitalized
Allocated Costs
$
$
Total
0
0

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