A building that cost $168,960 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,528 and was permitted to keep all materials salvaged. Jan, 30 Machinery that was purchased in 2013 for $20,480 is sold for $3,712 cash, f.o.b. purchaser's plant. Freight of $384 is paid on the sale of this machinery. Mar. 10 A gear breaks on a machine that cost $11,520 in 2012. The gear is replaced at a cost of $2,560. The replacement does not extend the useful life of the machine but does make the machine more efficient. Mar. 20 A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,040 because of defective workmanship on the original base. The cost of the machinery was $18,176 in 2014. The cost of the base was $4,480, and this amount was charged to the Machinery account in 2014. May 18 June 23 One of the buildings is repainted at a cost of $8,832. It had not been painted since it was constructed in 2016.

A building that cost $168,960 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,528 and was permitted to keep all materials salvaged. Jan, 30 Machinery that was purchased in 2013 for $20,480 is sold for $3,712 cash, f.o.b. purchaser's plant. Freight of $384 is paid on the sale of this machinery. Mar. 10 A gear breaks on a machine that cost $11,520 in 2012. The gear is replaced at a cost of $2,560. The replacement does not extend the useful life of the machine but does make the machine more efficient. Mar. 20 A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,040 because of defective workmanship on the original base. The cost of the machinery was $18,176 in 2014. The cost of the base was $4,480, and this amount was charged to the Machinery account in 2014. May 18 June 23 One of the buildings is repainted at a cost of $8,832. It had not been painted since it was constructed in 2016.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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14. A company purchased a 10 - ton draw press at a cost of $187,000 with terms of 2/15, n 45. Payment was made within the discount period. Shipping costs were $3,800, which included $320 for insurance in transit. Installation costs totaled $12,900, which included $ 4,600 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:
Devon Manufacturing Company purchased a new canning machine on July 1, 2015, for $190,000. The estimated salvage value is $15,000. The company uses units-of-production depreciation and estimates the machine will produce 125,000 units during its useful life. In 2015, the company manufactured 5,000 units after acquiring the machine. Depreciation expense for 2015 will be $7,600 $6,500 $14,000 $7,000
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Can I please get some help with this question?(5.9) Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. Record the purchase of a used machine for $240,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit January 02 Journal entry worksheet Record the costs of $10,000 incurred on the used machine. Note: Enter debits before credits.…
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Promise Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the company's fleet. data facts: When acquired in 2015, the rig cost $370,000and was expected to remain in service for 10 years or 1,000,000 miles. Estimated residual value was $140,000. The truck was driven 85,000 miles in 2015, 125,000miles in 2016, and 165,000 miles in 2017.After 40,000 miles, on March 15, 2018, the company traded in the Mack truck for a less expensive Freightliner. Promise also paid cash of $28,000.Fair market value of the Mack truck was equal to its net book value on the date of the trade. Requirements: 1. Record the journal entry for depreciation expense in 2018. 2. Determine Promise's cost of the new truck. 3. Record the journal entry for the exchange of assets on MarchMarch 15, 2018. Assume the exchange had commercial substance.
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:
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