Need answer the financial accounting question Evergreen Logistics incurred the following costs for a new delivery truck:ItemAmount ($)Purchase price$120,000Sales tax$6,600Delivery charge from seller's location$1,800Special racks for storage$2,500Normal repairs to the truck before use $1,200Signs painted on the truck$1,700Insurance on the truck before first use $2,800What is the total cost of the delivery truck?A. $133,100B. $136,600C. $134,600D. $135,400

Step 1: Define Total Cost of an AssetThe Total Cost of an Asset includes all costs necessary to…

Answered: Evergreen Logistics incurred the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9EB: Ronson recently purchased a new boat to help ship product overseas. The following information is...

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What is the cost of delivery van?
A company incurred the following costs for a new delivery truck: Purchase price $148,000 Sales tax 9,200 Delivery charge from the seller's location 2,600 Special racks for storage 3,000 Normal repairs to the truck before it was used for the first time 1,800 Repairs after the truck has been used for 9 months 5,000 Extended warranty taken out on the truck 5,900 Signs painted on the truck 2,000 Insurance on the truck before it was used for the first time 5,500 What is the cost of the delivery truck? A. $159,800 B. $172,100 C. $183,000 D. $161,800
A company incurred the following costs for a new delivery truck: solve this accounting question
Wildhorse Co. incurs these expenditures in purchasing a truck: cash price $24,300, accident insurance (during use) $2,500, sales taxes $1,22O, motor vehicle license $510, and painting and lettering $1,850. What is the cost of the truck? The cost of the truck %24
Rizio Company purchases a machine for $10,600, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $106 discount. Transportation costs of $240 were paid by Rizio. The machine required mounting and power connections costing $733. Another $346 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $325 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Rizio Company purchases a machine for $10,000, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $100 discount. Transportation costs of $226 were paid by Rizio. The machine required mounting and power connections costing $691. Another $326 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $365 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded
On 1 May 2020, Ron Trading purchased a new machine. The following paymentsrelate to the machine.List price $21,500Purchase discount $2,000Transportation cost $300Repair of damage parts incurred in transporting the machine $1,000Fees paid to test the machine before use $500Fees paid to the installer to install the machine $800Machine operator’s salary for the first month of operation $3,000Maintenance costs for the first month of operation $300(i) Identify and compute the cost of the machine to be recognised. Explainyour reasoning.(ii) Journalise the transactions. Assume the above payments are paid in cash.
Nelson Company purchased equipment and incurred the following costs: Cash price = $55,000 Sales taxes = $4,400 Insurance during transit = $400 Site preparation, installation, and testing= $2,300What amount should be used as the cost basis of the equipment?
The following costs pertain to a new delivery truck that was purchased on March 31, 2020. All costs were paid in cash. Calculate how much the truck will be capitalized as an asset for the truck. How much will be expensed? You are not required to prepare a journal entry. Cost of Truck $30,000 Delivery charges $1,300 Ongoing gasoline purchases each week $ 200 Sales Tax $2,100
Rizio Co. purchases a machine for $12,000, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $120 discount. Transportation costs of $271 were paid by Rizio. The machine required mounting and power connections costing $830. Another $391 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $360 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Rizio Company purchases a machine for $13,600, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $272 discount. Transportation costs of $307 were paid by Rizio. The machine required mounting and power connections costing $940. Another $443 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $270 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine, Amount Included in Cost of Equipment: Invoice price of machine 24 13,600 272 Net purchase price 13,328 Transportation 307 Mounting and power connections 940 Assembly 443 Materials used in adjusting 40 Total cost to be recorded 2$ 15,058 eBook Pro G Search or type URL ** %23 $4 & 2 4. 6 7 10 E T Y U D F G H. K L
Hummer Company purchased a delivery truck. The total cash payment was $30,000, including the following items. Explain how each of these costs would be accounted for. Negotiated purchase price $24,000 Installation of special shelving 1,100 Painting and lettering 900 Motor vehicle license 180 Annual insurance policy 2,400 Sales 7-2atax 1,420 Total paid $30,000

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