Worthington Chandler purchased equipment for $40k. Sales tax on the purchase was $2400. Other costs incurred were freight charges of $600 repairs of $350 for damage during installation and installation costs of $675. What is the cost of the equupment? a.) 43,675
Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costsamounted to…
A: Fixed assets are assets that are held or acquired by the business for longer period of time. For…
Q: Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid…
A: Cost of assets: As per the generally accepted accounting principles, the cost of assets includes all…
Q: Benson Company acquired a machine that involved the following expenditures and related factors:…
A: Correct option is b Explanation
Q: ece of machinery has marked price of P550,000. It was purchased under the term 15%, 10%, and 5%…
A: Given: Marked Price of Machinery = P550,000 Three Discount are Given i.e. 15%,10% and 5% Cost of…
Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to…
A: Capitalization is the process by which the long-term asset is recorded on the balance sheet and its…
Q: Ivanhoe Engineering Corporation purchased conveyor equipment with a list price of $45,200. Three…
A: answers 1. The vendor credit terms are 1/10 net 30 which means discount of 1% will be available…
Q: In 20x1, Seth Wholesalers transferred goods to a retailer on consignment. The goods cost P225,000…
A: Goods on Consignment : Consignment is considered to be third party sales agreement in…
Q: Rizio Company purchases a machine for $13,800, terms 2/10, n/60, FOB shipping point. Rizio paid…
A: The cost of the machine: When a business purchases a machine, it is recorded at cost. The cost…
Q: Steele Corp. purchases equipment for $21,000. Regarding the purchase, Steele recorded the following…
A: Acquisition cost is cost incurred to put the asset in to use Maintenance costs are not capitalized…
Q: A commercial company bought 250 units of a certain material at a price of 50,000 dinars per unit,…
A: calculation the cost of the material purchased Particulars Amounts Purchase price of material…
Q: LOQUACIOUS TALKATIVE Co. acquired a piece of factory equipment overseas on a cash basis for…
A: All fixed assets in the business should be capitalised at their purchase cost along with all…
Q: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following…
A: Introduction: Acquisition costs include sums spent for permanent assets, fees incurred when…
Q: HP Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10,…
A: Equipment cost includes all cost such as - installation charges , slab rate charge , taxes etc.…
Q: On October 1, consignment. P20,000 each. P10,000. The consignor agreed to absorb the consignee's…
A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…
Q: M/S Naeem Motors sent 1000 cars to Haseeb on consignment. The cost of each car was (Rs. Use your…
A: Given, Freight = Rs. 7,000 Insurance = Rs. 3,000 All amount are in (Rs.) Rupees.
Q: Oaktree Company purchased new equipment and made the following expenditures: Purchase price $45,000…
A: Determine acquisition cost of the equipment.
Q: Warren Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted…
A: Fixed assets should be recorded at cost of acquisition. Cost includes all expenditures directly…
Q: Sandwich Express incurred the following costs related to its purchase of a bread machine.Cost of the…
A: Cost of equipment: It can be defined as the cost of buying the equipment, deducting any discount…
Q: Hummer Company purchased a delivery truck. The total cash payment was $30,000, including the…
A:
Q: On October 1, CLARK Co shipped 25 cameras to KENT Inc on consignment. The cameras are to be sold at…
A: Consignment is an arrangement where there are two parties cosignor and consignee and they have a…
Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to…
A: Costs to be capitalised are total costs incurred on acquisition or purchase of fixed assets and all…
Q: Viserys Corporation, a dealer of cars, sold its old warehouse with carrying amount of P600,000 for…
A:
Q: Rizio Company purchases a machine for $12,400, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Cost of assets: As per the generally accepted accounting principles, the cost of assets includes all…
Q: Rizio Company purchases a machine for $9,600, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Cost of machine includes the purchase price , freight and other ancillary costs incurred to make it…
Q: TTG Landscaping purchased a dump truck for $150,000. In addition, they spent $12,000 in sales tax,…
A: Journal entry is recorded by the business to record event and transaction occurred during particular…
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: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…
A: FOB stands for Free on Board. It is the term used during shipment to show whether the seller or…
Q: ABC Co purchased an equipment from Hongkong for P100,000. Additional cost included the following:…
A: Journal is the book where transactions are originally recorded. Further, a journal entry is used to…
Q: Corner Company puchased a van with a list price of P3,000,000. The dealer granted a 15% reduction in…
A: List price = P3,000, 000 Net price = List price - reduction in list price
Q: In October, Dean Company exchanged an old packing machine costing P240,000 and 50% depreciated, for…
A: Whenever a property is sold more than its carrying amount or value, a profit or gain on the sale of…
Q: For what amount will LAR record the range?
A: Recording the purchase of an asset is an important ledger entry as it show cases in the balance…
Q: Salman and Adnan Corporation purchased typesetting equipment having a list price of Rs. 306,000 from…
A: The expenses that are occurred to increase the life of an asset are capitalized and added to value…
Q: In 20x1, Seth Wholesalers transferred goods to a retailer on consignment. The goods cost P225,000…
A: A consignment sale is an arrangement in which an entity sale its product through a retailer in…
Q: Granite Company purchased a machine costing $121,000, terms 2/10, n/30. The machine was shipped FOB…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: ABC Co purchased an equipment from Hongkong for P100,000. Additional cost included the following:…
A: Lets understand the basics. As per IAS 16 "PPE", PPE initially needs to capitalized on books of…
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: DN Company had the following transactions during th ear of operations: urchased goods worth P100,000…
A: Introduction Cost of goods available for sale: The most inventory a corporation may potentially…
Q: On October 9, 2020, Steven Company purchased $4,500 of product on account from Bryant Company on…
A: JOURNAL ENTRIES FOR STEVEN COMPANY:
Q: What is the inventory value of the units unsold in the hands of the consignee? A. 150,000 C. 154,500…
A: The answer for the multiple choice questions and relevant working are presented hereunder : Cost of…
Q: 1 Ross Company incurs these expenditures in purchasing a truck: cash price $25,000, accident…
A: Answer: Cost of Truck include following expenditure: Cash Price $25,000 Sales tax $1,080 Total…
Q: Rizio Co. purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. The seller prepaid…
A: The calculation of the total cost to be recorded as follows:
Q: Rizio Co. purchases a machine for $12,500, terms 2∕10, n∕60, FOB shipping point. Rizio paid within…
A:
Q: On 1 October 20X5 Dearing Co acquired a machine under the following terms.…
A: Cost of Acquisition The basic cost of acquisition of cost which are included the purchase cost of…
Q: ALPHA Company purchased equipment on 1/1/N with an invoice price of $80,000. Purchase taxes $16,000.…
A: Answer a)
Q: eele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following…
A: Solution: Purchase price = $25,000 Shipping = $1,000 Installation fees = $2,000 Discount = 5% on…
Q: Alisa Trading owns machinery that costs MYR 80,000. It is the policy of the business to charge…
A: DEPRECIATION CHARGE : = ( COST OF ASSET - ESTIMATED RESIDUAL VALUE ) / ESTIMATED USEFUL LIFE OF…
Q: the total cost of equipment.
A: Cost of fixed asset include its purchase price, non-refundable taxes incurred for purchase, cost of…
Q: ivery and installation for each set. Commission is to be 25% of the sales price. On October 31, KENT…
A: Total expenditure incurred on the Consignment : Cost of Goods sent on Consignment P 250,000 ( 25 ×…
Q: Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales…
A: Cost of the Equipment = Purchase Price + Sales Tax + Freight Charges for shipment of machine +…
Q: Steele Corp. purchases equipment for $23,000. Regarding the purchase, Steele recorded the following…
A: According to IFRS - Property, Plant & Equipment, all the costs incurred directly related to the…
Worthington Chandler purchased equipment for $40k. Sales tax on the purchase was $2400. Other costs incurred were freight charges of $600 repairs of $350 for damage during installation and installation costs of $675. What is the cost of the equupment?
a.) 43,675
b.) 40k
c.) 42,400
d.) 44,025
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $90,000 cash B. $85,000 cash C. $80,000 cash
- Marigold Corp. purchased equipment for $31200. Sales tax on the purchase was $1470. Other costs incurred were freight charges of $390, repairs of $690 for damage during installation, and installation costs of $400. What is the cost of the equipment? $31200. $34150. $33460. $32670.Bonita Industries purchased equipment for $30600. Sales tax on the purchase was $1450. Other costs incurred were freight charges of $360, repairs of $700 for damage during installation, and installation costs of $410. What is the cost of the equipment? $30600. $33520. $32820. $32050.Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costsamounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs thatshould be capitalized?A. $60,600B. $66,100C. $54,000D. $59,400
- Warren Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200, and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? Select one: $59,400 $60,600 $66,100 $54,000Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized?A piece of machinery has marked price of P550,000. It was purchased under the term 15%, 10%, and 5% discounts. The cost of freight and installation after deducting the P8,000 sales proceeds of the old machinery which was replaced is P12,000. The new machinery shall be recorded at a cost of A. 411,712 B. 405,000 C. 419,712 D. 397,000
- On October 1, CLARK Co shipped 25 cameras to KENT Inc on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee’s expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, KENT submitted the following summary of consignment sales: Sets received 25 Sets sold 8 Sets returned to consignor (defective) 2 10 Sets on hand 15 October 2-30 sales, 8 cameras@20,000 160,0000 Charges: Freight in 5,000 Deliveries and installation expenses 8,000 Commissions 40,000 53,000 Total 107,000 Remittance 25,000 Balance owed (collections from customers not yet made ) 82,000 What is the inventory value of the units unsold in the hands of the consignee?A. 150,000 C.…On October 1, CLARK Co shipped 25 cameras to KENT Inc on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee’s expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, KENT submitted the following summary of consignment sales: Sets received 25 Sets sold 8 Sets returned to consignor (defective) 2 10 Sets on hand 15 October 2-30 sales, 8 cameras@20,000 160,0000 Charges: Freight in 5,000 Deliveries and installation expenses 8,000 Commissions 40,000 53,000 Total 107,000 Remittance 25,000 Balance owed (collections from customers not yet made ) 82,000 What is the profit of the consignor for the units sold?Sheridan Company incurs the following costs in purchasing equipment: invoice price, $40,500; shipping, $1,025; installation and testing, $1,600; one-year insurance policy, $2,750.What is the cost of the equipment?