Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $9,900, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $198 discount. Transportation costs of $224 were paid by Rizio. The machine required mounting and power connections costing $684. Another $323 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $300 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 S 0 0
Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $9,900, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $198 discount. Transportation costs of $224 were paid by Rizio. The machine required mounting and power connections costing $684. Another $323 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $300 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 S 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Exercise 8-1 (Algo) Cost of plant assets LO C1
Rizio Company purchases a machine for $9,900, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took
the $198 discount. Transportation costs of $224 were paid by Rizio. The machine required mounting and power connections costing
$684. Another $323 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the
machine was damaged and $300 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
S
0
0
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