Chicken Wings Inc. purchased a new camper’s bubble pool machine on an installment basis because based on Chicken’s financial analyst, it would be advantageous for the company to buy it in installment rather than for P3,256,500 in cash. Hence, Chicken Wings paid P835,000 as its down payment and the remaining will be paid as follows: Issuance of promissory note payable in 5 months – 334,000 per month Issuance of 16,700 ordinary shares with P35 par value And P50 fair value per share Bubble pool machine installation costs Chicken Wings a total amount of P250,500. This has been paid thru the company’s credit card. What is the initial cost of bubble pool machine?
Chicken Wings Inc. purchased a new camper’s bubble pool machine on an installment basis because based on Chicken’s financial analyst, it would be advantageous for the company to buy it in installment rather than for P3,256,500 in cash. Hence, Chicken Wings paid P835,000 as its down payment and the remaining will be paid as follows:
Issuance of promissory note payable in 5 months – 334,000 per month
Issuance of 16,700 ordinary shares with P35 par value
And P50 fair value per share
Bubble pool machine installation costs Chicken Wings a total amount of P250,500. This has been paid thru the company’s credit card. What is the initial cost of bubble pool machine?
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