**Title: Costs Incurred in Acquiring New and Used Printing Presses** Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing presses. One printing press was new, and the other was purchased from a business that recently filed for bankruptcy. ### a. Costs for New Printing Press Indicate which costs incurred in acquiring the new printing press (items 1-6 below) should be debited to the asset account. | Item | Debited to Asset Account | |-----------------------------------------------------|--------------------------| | 1. Fee paid to factory representative for installation | Yes/No | | 2. Freight | | | 3. Insurance while in transit | | | 4. New parts to replace those damaged in unloading | | | 5. Sales tax on purchase price | | | 6. Special foundation | | ### b. Costs for Used Printing Press Indicate which costs incurred in acquiring the used printing press (items 7-12 below) should be debited to the asset account. | Item | Debited to Asset Account | |-----------------------------------------------------|--------------------------| | 7. Fees paid to attorney to review purchase agreement | | | 8. Freight | | | 9. Installation | | | 10. Repair of damage incurred in reconditioning the press | | | 11. Replacement of worn-out parts | | | 12. Vandalism repairs during installation | | **Instructions:** Select "Yes" or "No" for each item to determine if it should be debited to the asset account. **Navigation:** Options to "Check My Work," and navigate through "Previous" and "Next" are available. **Time Stamp:** The session was recorded at 1:33 PM on 9/30/2020.
**Title: Costs Incurred in Acquiring New and Used Printing Presses** Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing presses. One printing press was new, and the other was purchased from a business that recently filed for bankruptcy. ### a. Costs for New Printing Press Indicate which costs incurred in acquiring the new printing press (items 1-6 below) should be debited to the asset account. | Item | Debited to Asset Account | |-----------------------------------------------------|--------------------------| | 1. Fee paid to factory representative for installation | Yes/No | | 2. Freight | | | 3. Insurance while in transit | | | 4. New parts to replace those damaged in unloading | | | 5. Sales tax on purchase price | | | 6. Special foundation | | ### b. Costs for Used Printing Press Indicate which costs incurred in acquiring the used printing press (items 7-12 below) should be debited to the asset account. | Item | Debited to Asset Account | |-----------------------------------------------------|--------------------------| | 7. Fees paid to attorney to review purchase agreement | | | 8. Freight | | | 9. Installation | | | 10. Repair of damage incurred in reconditioning the press | | | 11. Replacement of worn-out parts | | | 12. Vandalism repairs during installation | | **Instructions:** Select "Yes" or "No" for each item to determine if it should be debited to the asset account. **Navigation:** Options to "Check My Work," and navigate through "Previous" and "Next" are available. **Time Stamp:** The session was recorded at 1:33 PM on 9/30/2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Title: Costs Incurred in Acquiring New and Used Printing Presses**
Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing presses. One printing press was new, and the other was purchased from a business that recently filed for bankruptcy.
### a. Costs for New Printing Press
Indicate which costs incurred in acquiring the new printing press (items 1-6 below) should be debited to the asset account.
| Item | Debited to Asset Account |
|-----------------------------------------------------|--------------------------|
| 1. Fee paid to factory representative for installation | Yes/No |
| 2. Freight | |
| 3. Insurance while in transit | |
| 4. New parts to replace those damaged in unloading | |
| 5. Sales tax on purchase price | |
| 6. Special foundation | |
### b. Costs for Used Printing Press
Indicate which costs incurred in acquiring the used printing press (items 7-12 below) should be debited to the asset account.
| Item | Debited to Asset Account |
|-----------------------------------------------------|--------------------------|
| 7. Fees paid to attorney to review purchase agreement | |
| 8. Freight | |
| 9. Installation | |
| 10. Repair of damage incurred in reconditioning the press | |
| 11. Replacement of worn-out parts | |
| 12. Vandalism repairs during installation | |
**Instructions:**
Select "Yes" or "No" for each item to determine if it should be debited to the asset account.
**Navigation:**
Options to "Check My Work," and navigate through "Previous" and "Next" are available.
**Time Stamp:**
The session was recorded at 1:33 PM on 9/30/2020.
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Asset
Any property or things owned by business are called Assets.
Example: Buildings, Land, machinery etc.
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