Give true answer this general accounting question A company purchased for cash a machine with a list price of$90,000. The machine was shipped FOB shipping point at acost of $5,000. Installation and test runs of the machine cost$3,000. The recorded acquisition cost of the machine iswhich amount?a. $98,000b. $128,000c. $90,000d. $93,000

Step 1: Define Historical CostThe cost principle in accounting requires that assets are recorded at…

Answered: A company purchased for cash a machine…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 5CE: Prepare journal entries for the following transactions: a. A machine with a cost of 10,000 and...

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VC purchased a machine for use in operations at a quoted price of $35,120. Full payment was cash of $8,000, plus a two-year non-interest-bearing note for $27,121. The market rate of interest for this note is 8 percent. VC should record the cost of the machine as (rounded to the nearest dollar): a. $32,950 b. $31,250 c. $23,250 d. $35,000 Please answer explaining in detail step by step without table and graph thankyou
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An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The conveyor units had a first cost of $30,000 with a$9000 salvage value. The annual operating cost allocated to the conveyor is $7000 per year. The book value at the end of year 2 is closest to:a. $6,480b. $10,800c. $12,400d. $18,000
Natural Resources The Hollister Company acquires a silver mine at the cost of $1,300,000 on January 1. Along with the purchase price Hollister pays additional costs associated with development of $50,000. Hollister expects the mine will have a salvage value of $100,000 once all the silver has been mined. Best estimates are that the mine contains 250,000 tons of ore. Required a. Prepare the entry to record the purchase of the silver mine. b. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined and all the ore is sold. c. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined but only 15,000 tons of the ore are sold. Description Debit Credit a. Answer Answer Answer Answer Answer Answer Purchase of silver mine b. Answer Answer Answer Answer Answer Answer To record depletion on silver mine. c. Silver inventory Answer Answer Answer…
Natural Resources The Hollister Company acquires a silver mine at the cost of $1,300,000 on January 1. Along with the purchase price Hollister pays additional costs associated with development of $50,000. Hollister expects the mine will have a salvage value of $100,000 once all the silver has been mined. Best estimates are that the mine contains 250,000 tons of ore. Required a. Prepare the entry to record the purchase of the silver mine. b. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined and all the ore is sold. c. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined but only 15,000 tons of the ore are sold. Description Credit a. b. c. Silver inventory esc + To record depletion on silver mine. Check ! 1 To record depletion on silver mine. Q Purchase of silver mine ◆ A + 2 W S + # 3 Debit E D 80 0 0 0 0 0 0 0 $ 4 R F 0 0 0 0 0 0 0 % 5 pe T G 6 Y & 7 H U * 8 J FB 1 ( 9 K O 0 L P 4) F11 +…
Natural Resources The Hollister Company acquires a silver mine at the cost of $1,300,000 on January 1. Along with the purchase price Hollister pays additional costs associated with development of $50,000. Hollister expects the mine will have a salvage value of $100,000 once all the silver has been mined. Best estimates are that the mine contains 250,000 tons of ore. Required a. Prepare the entry to record the purchase of the silver mine. b. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined and all the ore is sold. C. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined but only 15,000 tons of the ore are sold. Description Debit Credit a. Purchase of silver mine b. 0. To record depletion on silver mine. c. Silver inventory 0. To record depletion on silver mine.
9. ABC Company purchased a machine on December 1, 20X1 at an invoice price of 4, 500, 000 with terms 2/10, n/30. On December 10, 20X0, ABC paid the required amount for the machine. On December 1, 20X0, ABC paid 80, 000 for delivery of the machine and on December 31, 20X0, it paid 310, 000 for installation and testing of the machine. The machine was ready for use on January 1, 20X1. It was estimated that the machine would have a useful life of 5 years and a residual value of 800, 000. Engineering estimates indicated that the useful life in productive units was 200, 000. Units actually produced during the first 2 years were 30, 000 in 20X1 and 48, 000 in 20X2. ABC Company decided to use the output method of depreciation. What is the depreciation of the machine for 20X2?
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Natural Resources The Hollister Company acquires a silver mine at the cost of $2,100,000 on January 1. Along with the purchase price Hollister pays additional costs associated with development of $50,000, Hollister expects the mine will have a salvage value of $300,000 once all the silver has been mined. Best estimates are that the mine contains 250,000 tons of ore. Required a: Prepare the entry to record the purchase of the silver mine. b. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined and all the ore is sold, c. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined but only 15,000 tons of the are are sold Description Credit 4 # Purchase of silver mine # = To record depletion on silver mine Siver inventory To record depletion on silver mine Debit
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A company purchased for cash a machine with a list price of $90,000. The machine was shipped FOB shipping point at a cost of $5,000. Installation and test runs of the machine cost $3,000. The recorded acquisition cost of the machine is which amount? a. $98,000 b. $128,000 c. $90,000 d. $93,000