capitalized as cost of the machine
Q: Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a…
A: The capitalized cost of an asset consists of the acquisition cost of the asset and other costs are…
Q: Company W manufactures equipment that is used to make widgets. The widget-making process involves…
A: Cost allocation refers to a process used for identifying, aggregating, and assigning costs to each…
Q: Thompson table company purchased assembly machine. The invoice price of the machine was $3,000 plus…
A: Formula: Total Machine cost = Purchase price of machine + Freight Sum of both machinery price +…
Q: Rizio Co. purchases a machine for $14,800, terms 1/10, n/60, FOB shipping point. Rizio paid within…
A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…
Q: Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a…
A: Cost of asset is the amount paid for an asset and for expenses incurred in putting the asset in…
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A: Equipment is a kind of fixed asset that a company utilizes in its operations. It is included on the…
Q: Kegler Bowling buys scorekeeping equipment with an invoice cost of $180,000. The electrical work…
A: All the costs incurred for making the asset ready for use are capitalized costs. All the costs that…
Q: On March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The…
A: Introduction Advanced Technologies: A technology that is either technically developed but has just a…
Q: Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list…
A: To determine the amount to be capitalized in the asset account for the purchase of the front-end…
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: Rizio Company purchases a machine for $11,200, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: All costs which are incurred from the time of purchase of machine up to the point of installation to…
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: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge…
A: Total Cost is that Cost which incurred in production of any product It’s Include Variable Cost &…
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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: ransportation costs of $334 were paid 2 is paid to assemble the machine, and ed and $350 worth of…
A: Answer : Cost recorded for the machine : Amount included in the cost of the equipment Invoice…
Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $313 plus a…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $25,000. On the…
A: Working: Balance amount of machine paid later = $25,000-$7,000 = $18,000. Interest on amount paid…
Q: Vaughn Co. purchased land as a factory site for $520,000. The process of tearing down two old…
A: Cost of the asset or the book value of the asset is the amount at which an asset is recorded in the…
Q: Charles Corp. purchased a new machine for its factory. The following lists shows the various…
A: Capitalized cost of the machine Particulars Amount Base purchase price $40,000 Sales tax…
Q: 2260 2260 950 125916
A: Cost of asset is the amount paid for an asset and for expenses incurred in putting the asset in…
Q: Rizio Co. purchases a machine for $12,000, terms 1/10, n/60, FOB shipping point. Rizio paid within…
A: Net purchase price=Purchase price-DIscount=$12,000-$120=$11,880
Q: Sicily Pizza purchased baking ovens from New World Deli. New World Deli was closing its bakery…
A: The entire sum of money required to purchase, install, and get equipment ready for use is referred…
Q: Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list…
A: The cost of asset to be capitalized includes all type of costs pertaining to the assets. Purchase…
Q: Rizio Company purchases a machine for $10,600, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Note: The amount paid for first-year insurance will not capitalize with the machinery because the…
Q: 1. Indicate the effects of each transaction on the accounting equation.
A: How balance sheet or accounting equation works.As per accounting equation, total assets are always…
Q: Kegler Bowling buys scorekeeping equipment with an invoice cost of $185,000. The electrical work…
A: The equipment cost refers to the total expense incurred in the process of bringing a piece of…
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: A consumer electronics company was formed to sell a portable handset system. The company purchased a…
A: Taxable income=Gross income-Operating expense-Depreciation=2,500,000-1,280,000-128,000=1,092,000…
Q: Rizio Company purchases a machine for $10,000, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…
Q: Granite Company purchased a machine costing $124,000, terms 2/10, n/30. The machine was shipped FOB…
A: Answer - Computation of Cost to be recorded for this Machine Particulars Amount Amount…
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: A company purchases a 10,020-square-foot commercial building for $325,000 and spends an additional…
A:
Q: Rizio Company purchases a machine for $14,400, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…
Q: Foto-Fast Copy Shop provides a variety of photocopying and printing services. On June 5, the owner…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Anchor Company purchased a manufacturing machine with a list price of $88,000 and received a 2% cash…
A: Cost of machine means the amount actually incurred on buying the machine and in addition to this,…
Q: On March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The…
A: The intangible assets refer to the assets that have no physical substance. Examples of intangible…
Q: southwest milling co. purchased a front end loader to move stacks of lumber. the loader had a list…
A: a.Calculate the amount to be capitalized in an asset account for the purchase of the front end…
Q: On March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The…
A: IntroductionAdvanced Technologies:A technology that is either technically developed but has just a…
Q: Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a…
A: The capitalized cost of an asset consists of the acquisition cost of the asset and other costs are…
Q: Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $480,000. Shipping…
A: The costs incurred for bringing the tangible asset to the place of use and making it ready for use…
Q: Nash Co. recently installed some new computer equipment. To prepare for the installation, Nash had…
A: capitalization cost includes The direct expenses incurred in purchasing, building, or manufacturing…
Q: Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a…
A: Capitalization refers to an amount that is incurred in the long-term debt, stock, and retained…
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: On March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The…
A: The costs related to the acquisition or development of the assets are not expensed but capitalized.…
Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a…
A: Variable cost per copy using high-low method (Highest Cost - Lowest Cost) / (Highest No. of Copies -…
Q: Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for…
A: For computing cost of the machine, all cost directly related to machinery until it is put to use…
ABC Company purchased a new printing machine on December 1 at an invoice price of P4,000,000 with terms 2/10, n/30. On December 15, Cabiao paid the required amount for the machine. The installation costs were P50,000 and the employees received training on how to use the machine, at a cost of P20,000. Before using the machine to print customers’ orders, a test was undertaken and the paper and ink cost P5,000. What amount should be capitalized as cost of the machine?
A. 3,995,000
B. 3,970,000
C. 3,975,000
D. 4,075,000
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- HP Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $21,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $11,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? Select one: a. $123,600 b. $125,360 C. $131,760 d. $129,36 e. The answer does not exist Previous page Next pageSouthwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $124,960. The seller agreed to allow a 5.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,820. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $870. The loader operator is paid an annual salary of $15,500. The cost of the.company's theft insurance policy increased by $2,320 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $7,600. Required Determine the amount to be capitalized in the asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costsMarkson and Sons leases a copy machine with terms that include a fixed fee each month of $400 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $580 for 5,000 copies and $400 for 3,000 copies, how much would Markson pay if it made 8,400 copies? Total cost $ 886 X Feedback V Check My Work For the two listed amounts, find the difference between the highest and lowest amounts each to apply the high low method. The differences between the two highest and lowest amounts from both columns are used to calculate the variable cost per unit using the method. Once that amount is determined, the total costs is made up of the total fixed and variable costs. Apply the variable cost per unit times the number of copies and add in the fixed costs to determine the required amount.
- Rizio Co. purchases a machine for $9,500, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $95 discount. Transportation costs of $215 were paid by Rizio. The machine required mounting and power connections costing $657. Another $310 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $210 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $115,370. The seller agreed to allow a 6.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,080. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,150. The loader operator is paid an annual salary of $11,910. The cost of the company's theft insurance policy increased by $2,090 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $9,900. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costsDorman company purchased a new machine for its production process. The following costs were incurred for the new machine. Training costs for workers who will operate the machine $15,000 Wages paid to workers who operate the machine during production 109,000 Ordinary repairs to the machine before the first production run 1,000 1 Cost of platform used to properly secure the machine 30,000 Costs of tests run which took place before the first production run 8,000 WHICH COSTS SHOULD BE ADDED TO THE COST OF MACHINE?
- Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot and $47,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $117,890. The seller agreed to allow a 5.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,680. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $770. The loader operator is paid an annual salary of $28,360. The cost of the company's theft insurance policy increased by $1,940 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $6,100. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costs $ 0Fischer Construction purchased a used front-end loader for $42,000, terms 1/10, n/30, F.O.B. shipping point, freight collect.Fischer paid the freight charges of $405. One week after the machine was delivered, a check for $41,580 was sent to the seller.The loader required a new battery, which cost Fischer $225. Fischer also spent $360 to have the company name printedon the loader and $563 for one year’s insurance coverage on it. Fischer hired a new employee to operate it at a wage of $19 per hour;the employee spent one morning (four hours) practicing with the machine and went to work at a construction site that afternoon.Calculate the amount at which the front-end loader should be reported on the company’s balance sheet.
- During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $24,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 12 percent interest due in six months. On January 3, it paid $1,400 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,600. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,300. E8-4 Part 1 Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".) Date January 1 No effect January 2 Equipment Cash January…Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,810. The selleragreed to allow a 6.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight costamounted to $2,840. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $800. The loader operatoris paid an annual salary of $29,210. The cost of the company’s theft insurance policy increased by $2,180 per year as a result ofacquiring the loader. The loader had a four-year useful life and an expected salvage value of $13,500.Requireda. Determine the amount to be capitalized in an asset account for the purchase of the loader.b. Record the purchase in general journal format. Required A Required B Complete this question by entering your answers in the tabs below.Raymond Stamping Services purchased a stamping machine priced at $21,500. The firm had to pay a sales tax of $1,200 on this purchase. Raymond also paid the inbound transportation charges of $525 on the new machine, as well as a labor cost of $1,350 to install the machine in the factory. In addition, Raymond had to prepare the site before installation at a cost of $2,125. Determine the cost basis for the new machine for depreciation purposes.
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