I am unsure how to find the total cost and how to calculate depreciation expense and accumulated depreciation HelpSave & ExitSubCheck my workHamlet College recently purchased new computing equipment for its library. The following information refers to the purchase andinstallation of this equipment.1. The list price of the equipment was $285,000; however, Hamlet College qualified for an "education discount" of $25.000. It paid$50,000 cash for the equipment, and issued a three-month, 9 percent note payable for the remaining balance. The note, plusaccrued interest charges of $4,500, was paid promptly at the note's maturity date.2. In addition to the amounts described in 1, Hamlet paid sales taxes of $15,000 at the date of purchase.3. Freight charges for delivery of the equipment totaled $1,000.4. Installation costs related to the equipment amounted to $5,000.5. During installation, one of the computer terminals was accidentally damaged by a library employee. It cost the college $500 torepair this damage.6. As soon as the computers were installed, the college paid $4,000 to print admissions brochures featuring the library's new, state-ofthe-art computing facilities.Required:c. Compute the total cost added to the college's computing equipment account.d. Prepare a journal entry at the end of the current year to record depreciation on the computing equipment. Hamiet Colege intendsto depreciate this equipment by the straight-line method (half-year convention) over an estimated useful life of five years. Assume azero residual value.Complete this question by entering your answers in the tabs below.< Prey2 of 3Next >hulu89

Hamlet College recently purchased new computing equipment for its library. The following information refers to the purchase and installation of this equipment. 1. The list price of the equipment was $285.000

Hamlet College recently purchased new computing equipment for its library. The following information refers to the purchase and installation of this equipment. 1. The list price of the equipment was $285.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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I am unsure how to find the total cost and how to calculate depreciation expense and accumulated depreciation

Help
Save & Exit
Sub
Check my work
Hamlet College recently purchased new computing equipment for its library. The following information refers to the purchase and
installation of this equipment.
1. The list price of the equipment was $285,000; however, Hamlet College qualified for an "education discount" of $25.000. It paid
$50,000 cash for the equipment, and issued a three-month, 9 percent note payable for the remaining balance. The note, plus
accrued interest charges of $4,500, was paid promptly at the note's maturity date.
2. In addition to the amounts described in 1, Hamlet paid sales taxes of $15,000 at the date of purchase.
3. Freight charges for delivery of the equipment totaled $1,000.
4. Installation costs related to the equipment amounted to $5,000.
5. During installation, one of the computer terminals was accidentally damaged by a library employee. It cost the college $500 to
repair this damage.
6. As soon as the computers were installed, the college paid $4,000 to print admissions brochures featuring the library's new, state-of
the-art computing facilities.
Required:
c. Compute the total cost added to the college's computing equipment account.
d. Prepare a journal entry at the end of the current year to record depreciation on the computing equipment. Hamiet Colege intends
to depreciate this equipment by the straight-line method (half-year convention) over an estimated useful life of five years. Assume a
zero residual value.
Complete this question by entering your answers in the tabs below.
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2 of 3
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