Explain how each of these costs would be accounted for.
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A: Net purchase price=Purchase price-DIscount=$12,000-$120=$11,880
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A:
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3 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 |
1,200 |
Painting and lettering |
1,000 |
Motor vehicle license |
180 |
Annual insurance policy |
2,400 |
Sales 7-2atax |
1,400 |
Total paid |
$30,180 |
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- d) Prepare a properly classified report form of statement of fin Rent Deposit is classified as Other Non-Current Asset after Property and Equipment 4. Using the cash data in Problem 3, analyze its movement (inflow or outflow) in a working paper. Give the net flow of cash from its operating, financing and investing activities. 5. On July 1 of the current year Kenneth Brown formed the Pampanga Transport Line popularly called PTL. The following transactions occurred for the month of July: 1 The owner invested cash of P1,000,000. 2 Bought furniture and fixtures making a 50% down payment of P150,000 with the balance on account. 5 Second hand buses were ordered from Japan, through its domestic dealer Hino Motors Corporation, amounting to 8,444,000 in Japanese yens. A yen is equal to P.45. The amount was loaned by Hong Kong and Shanghai Bank after Brown issued a five-year promissory note. 8 The buses were delivered by Hino Motors. 10 Entered into an agreement with Petron who will supply the…A company purchased $3,400 worth of merchandise. Transportation costs for the buyer were an additional $300. The company returned $235 worth of merchandise and then paid the invoice within the 1% cash discount period. The total cost of this merchandise is: Multiple Choice $3,335.00. S3, 263.00. $3, 431.00. $3, 433.35. $3,465.00.A car dealer acquires a used car for $16,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include • $130 for transportation-in. • $150 for shipping insurance. • $920 for car import duties. • $200 for advertising. • $2,000 for sales staff salaries. • $110 for trimming shrubs. Included in Expensed as Cost Inventory Cost incurred Cost $ 16,000 Transportation-in 130 Import duties 920 Insurance during shipment 150 Advertising 200 Sales staff salaries 2,000 Trimming shrubs 110 Total $ 19,510
- Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens Company, invoice no. J34Y9, 250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the invoice, 15 (total 265.25). 11Bought one weed trimmer from Lionels Lawn Landscaping, invoice no. R7740, 219.72; terms 2/10, n/30; dated May 9; FOB shipping point, freight prepaid and added to the invoice, 35 (total 254.72). 15Bought five bags of fertilizer from Wrights Farm Supplies, invoice no. 478, 210.97; terms net 30 days; dated May 13; FOB destination. 25Bought one lawn mower from Gutierrez Corporation, invoice no. 2458, 425.39; terms net 30 days; dated May 22; FOB destination. Assume that Williams Corporation had beginning balances on May 1 of 3,492.29 (Accounts Payable 212), 4,239.49 (Purchases 511), and 234.89 (Freight In 514). Record the purchases of merchandise on account in the purchases journal (page 13) and then post to the general ledger.Vikram
- Record the following purchase transactions of Money Office Supplies. Aug. 3 Purchased 40 chairs on credit, at a cost of $60 per chair. Shipping charges are an extra $3 cash per chair and are not subject to discount. Terms of the purchase are 4/10, n/60, FOB Shipping Point, invoice dated August 3. Aug. 7 Purchased 25 chairs with cash, at a cost of $50 per chair. Shipping charges are an extra $4.00 cash per chair and are not subject to discount. Terms of the purchase are FOB Destination. Aug. 12 Money Office Supplies pays in full for their purchase on August 3. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used. Aug. 3 Purchase Aug. 3 Shipping charges Aug. 7 Purchase with cash Aug. 12 Payment20 A company purchased $3,500 of merchandise on July 5 with terms 1/10, n30. On July 7, it returned $700 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals 2004358 Multiple Choice O O O $2,800 $700 1337) Help Save & Exit $1000 SubmitA car dealer acquires a used car for $ 14,000, with term FOB shipping point. Compute total inventory costs assigned to the used car if costs include $ 250 for transportion-in $ 300 for shipping insurance $ 900 for care import duties $ 150 for advertising $ 1,250 for sales staff salaries $ 180 for trimming shrubs Select one: O a. $ 15,450 O b. $ 14,000 O . $14,900 O d. $ 17030
- A car dealer acquires a used car for $17,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include . $200 for transportation-in. $180 for shipping insurance. • $750 for car import duties. . $170 for advertising. $2,000 for sales staff salaries. $100 for trimming shrubs. Cost Transportation-in Import duties Insurance during shipment Advertising Sales staff salaries Trimming shrubs Total Cost Included in Inventory Cost $ 17,000 200 750 180 170 2,000 100 $ 20,400 Expensed as IncurredRecord the following purchase transactions of Money Office Supplies. Aug. 3 Purchased 30 chairs on credit, at a cost of $60 per chair. Shipping charges are an extra $5 cash per chair and are not subject to discount. Terms of the purchase are 4/10, n/60, FOB Shipping Point, invoice dated August 3. Aug. 7 Purchased 22 chairs with cash, at a cost of $50 per chair. Shipping charges are an extra $3.50 cash per chair and are not subject to discount. Terms of the purchase are FOB Destination. Aug. 12 Money Office Supplies pays in full for their purchase on August 3. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used. Aug. 3 Purchase Merchandise Inventory Merchandise Inventory Accounts Payable Accounts Payable Aug. 3 Shipping charges Merchandise Inventory Merchandise Inventory Cash Cash Aug. 7 Purchase with cash Merchandise Inventory Merchandise Inventory Cash Cash Aug. 12…1. The followving events affected Austin's Auto Shop during 2019. Purchased merchandise on account that costs $25,000. The terms of purchases are 2/11, n/45. The goods in Event 1 were purchased FOB shipping point with freight cost of 1 $800 cash Returned $2,000 of damaged merchandise (Event 1) to the supplier Sold merchandise that costs $12,000 for $21,500 cash. The terms of sale was 2/11, n/45. Delivered merchandise to customers in Event 4 under terms FOB destination with freight costs amounting to $500 cash Paid the amount due on its account payable (Event 1) within the discount period. 3. 4 6. The customer paid the amount due on (Event 4) during the discount period. 7. Required: a. Prepare journal entries to record the events 2.