Business
Engineering
Math
Science
Social Science
Cornerstones of Financial Accounti...
Solutions
Cornerstones of Financial Accounti...
A Cost of a Fixed Asset
Mist City Car Wash purchased a new brushless car-washing machine for one of its bays. The machine cost $41,700. Mist City borrowed the purchase price from its bank on a 1-year, 8% note payable. Mist City paid $975 to have the machine transported to its place of business and an additional $200 in shipping insurance. Mist City incurred the following costs as a part of the installation:
During the testing process, one of the motors became defective when soap and water entered the motor because its cover had not been installed properly by Mist City’s employees. The motor was replaced at a cost of $640.
Required:
1. Compute the cost of the car-washing machine.
2. CONCEPTUAL CONNECTION Explain why any costs were excluded from the cost of the machine.
(a)
Introduction:
As per the historical cost method fixed asset must be recorded at the exchange price when the asset is purchased. The cost must be recorded including all the expenditure that is incurred to purchase that asset.
To find: The total cost of the car washing machine.
We will add all the price of machine as well as all the expenditure that is incurred to purchase that machine
Total cost = machine cost + transportation ...
(b)
To state:
The cost if any is excluded from the cost of car washing machine.
Chapter 7 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addRefer to Figure 6.12 (pg. 212). To implement a many-to-many (M:N) relationship between two relations, the figur...
Accounting Information Systems
A manufacturer shipped merchandise to a retailer on a consignment basis. If the merchandise is unsold at the en...
Corporate Financial Accounting
The financial statements are interrelated. What item of financial or operating data appears on both the income ...
Financial & Managerial Accounting
Why is productivity important?
Principles of Economics (MindTap Course List)
Identify five ways in which the SBA provides management assistance to small businesses.
Foundations of Business (MindTap Course List)
Describe an important trade-off you recently faced. Give an example of some action that has both a monetary an...
Principles of Microeconomics (MindTap Course List)
A seven-year medical research study reported that women whose mothers took the drug DES during pregnancy were t...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
An academic department has just completed voting by secret ballot for a department head. The ballot box contain...
Probability and Statistics for Engineering and the Sciences
(Consumer Surplus) If, toward the end of the day, some people become indifferent whether or not they go on anot...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
A tax on a good has a deadweight loss if a. the reduction in consumer and producer surplus is greater than the ...
Principles of Macroeconomics (MindTap Course List)
AMORTIZATION SCHEDULE a. Set up an amortization schedule for a 19,000 loan to be repaid in equal installments a...
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Because capital is subject to diminishing returns, higher saving and investment do not lead to higher a. income...
Brief Principles of Macroeconomics (MindTap Course List)
P/E AND STOCK PRICE Ferrell Inc. recently reported net income of 8 million. It has 540,000 shares of common sto...
Fundamentals of Financial Management (MindTap Course List)
EVALUATING RISK AND RETURN Stock X has a 10% expected return, a beta coefficient of 0.9, and a 35% standard dev...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
As you have seen in this chapter, some businesses seek to protect themselves from negative online reviews by sl...
Essentials of Business Communication (MindTap Course List)
Direct labor cost budget Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Strike...
Financial And Managerial Accounting
Use examples to compare and contrast unstructured and structured data. Which type is more prevalent in a typica...
Database Systems: Design, Implementation, & Management
Using Figure P2.4 as your guide, work Problems 45. The DealCo relational diagram shows the initial entities and...
Database Systems: Design, Implementation, & Management
How does the new query system help Medihelp make better decisions for the company? Does Medihelp also use the s...
Fundamentals of Information Systems
List the sales rep number and name for every sales rep who represents at least one customer with a credit limit...
A Guide to SQL
What other potential risks and opportunities lie in the future of B2C c-commerce?
Fundamentals of Information Systems
Do you think Miller is out of options as he pursues his vendetta? If you think he could take additional actions...
Principles of Information Security (MindTap Course List)
How does materials requirement planning support the purchasing process in an ERP environment? What are some of ...
Principles of Information Systems (MindTap Course List)
While discussing the power flow through a five-speed transmission while it is in first gear: Technician A says ...
Automotive Technology: A Systems Approach (MindTap Course List)
How is a ring test performed?
Precision Machining Technology (MindTap Course List)
A solid circular steel cylinder S is encased in a hollow circular aluminum tube A. The cylinder and tube are co...
Mechanics of Materials (MindTap Course List)
For Problems 3.30 through 3.40, you are asked to look up some examples of specific standards and codes that are...
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Following are the results of a sieve analysis: a. Determine the percent finer than each sieve size and plot a g...
Fundamentals of Geotechnical Engineering (MindTap Course List)
Collecting and analyzing all this data will draw Penn National Gaming in to the realm of big data and business ...
Principles of Information Systems (MindTap Course List)
What e the main principles of source document design?
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Should Linda's history of past improprieties lead Maria to withdraw her support and replace her without giving ...
Management Of Information Security
Consider the meaning and purpose of the various recycling symbols shown in Figure 1.15. a. Which are used solel...
Solid Waste Engineering
Describe the operation of the line diagram in Figure 325 (B) by adding jumper wire D only.
Electric Motor Control
Convert 10,000 ft-lbf of energy into BTU, Joules, and kilojoules.
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Itemize the code rule for the installation of telephone cables in a residence. _____
EBK ELECTRICAL WIRING RESIDENTIAL
The grain-size distribution curves for three different sands (A, B, and C) are shown in Figure 2.34. Figure 2.3...
Principles of Geotechnical Engineering (MindTap Course List)
Replace the three forces with an equivalent force-couple system, with the force acting at O.
International Edition---engineering Mechanics: Statics, 4th Edition
Use LRFD and select a double-angle shape for the top chord of the truss of Problem 3.8-2. UseKx=Ky=1.0. Assume ...
Steel Design (Activate Learning with these NEW titles from Engineering!)
While discussing scan tool diagnosis of fuel injection systems: Technician A says that the scan tool may allow ...
Automotive Technology
Define the term, backward compatible.
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Determine the member end moments and reactions for the frame of Fig. P16.23 for the loading shown in the figure...
Structural Analysis
A former employee discovers six months after he starts work at a new company that his account credentials still...
Network+ Guide to Networks (MindTap Course List)
