Cost of a Fixed Asset Mist City Car Wash purchased a new brushless car-washing machine for one of its bays. The machine cost $33,700. Mist City borrowed the purchase price from its bank on a 1-year, 12% note payable. Mist City paid $500 to have the machine transported to its place of business and an additional $200 in shipping insurance. Mist City incurred the following costs as a part of the installation: Plumbing Electrical Water (for testing the machine) Soap (for testing the machine) $2,700 1,640 35 18 During the testing process, one of the motors became defective when soap and water entered the motor because its cover had not been installed properly by Mist City's employees. The motor was replaced at a cost of $450. Required: Compute the cost of the car-washing machine.
Cost of a Fixed Asset Mist City Car Wash purchased a new brushless car-washing machine for one of its bays. The machine cost $33,700. Mist City borrowed the purchase price from its bank on a 1-year, 12% note payable. Mist City paid $500 to have the machine transported to its place of business and an additional $200 in shipping insurance. Mist City incurred the following costs as a part of the installation: Plumbing Electrical Water (for testing the machine) Soap (for testing the machine) $2,700 1,640 35 18 During the testing process, one of the motors became defective when soap and water entered the motor because its cover had not been installed properly by Mist City's employees. The motor was replaced at a cost of $450. Required: Compute the cost of the car-washing machine.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Cost of a Fixed Asset
Mist City Car Wash purchased a new brushless car-washing machine for one of its bays. The machine cost $33,700. Mist City borrowed the purchase price from its bank on a 1-year, 12% note payable. Mist City paid $500 to have
the machine transported to its place of business and an additional $200 in shipping insurance. Mist City incurred the following costs as a part of the installation:
Plumbing
Electrical
Water (for testing the machine)
Soap (for testing the machine)
$2,700
1,640
35
18
During the testing process, one of the motors became defective when soap and water entered the motor because its cover had not been installed properly by Mist City's employees. The motor was replaced at a cost of $450.
Required:
Compute the cost of the car-washing machine.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education