In January, 2022, Harmony Inc. has the following expenditures relatedto manufacturing a new generation of its product. Match eachexpenditure to the appropriate accounting treatment on the right.Takes possession of amanufacturing machine. Thevendor sends an invoice forA. No accounting entry is necessary.B. Capitalize to a different asset account.C. Capitalize to the Machine account.$650,000.D. Expense.Pays a machine import duty of$35,000 to the government.Pays employees $75,000 forresearch and development tofinalize the new product design.Receives an invoice for $4,250from the company that shipped themachine.Pays employees $16,500 to install,customize, and test the newmanufacturing machine.v Pays $1,200 for a one-yearinsurance policy for the machine,with coverage beginning when themachine is placed into service onFebruary 16.

In manufacturing industries, the most commonly used fixed asset are the machineries. The acquisition…

In January, 2022, Harmony Inc. has the following expenditures related to manufacturing a new generation of its product. Match each expenditure to the appropriate accounting treatment on the right. Takes possession of a manufacturing machine. The vendor sends an invoice for $650,000. A. No accounting entry is necessary. B. Capitalize to a different asset account. C. Capitalize to the Machine account. D. Expense. Pays a machine import duty of $35,000 to the government. Pays employees $75,000 for research and development to finalize the new product design. v Receives an invoice for $4,250 from the company that shipped the machine. Pays employees $16,500 to install, customize, and test the new manufacturing machine. Pays $1,200 for a one-year insurance policy for the machine, with coverage beginning when the machine is placed into service on February 16.

In January, 2022, Harmony Inc. has the following expenditures related to manufacturing a new generation of its product. Match each expenditure to the appropriate accounting treatment on the right. Takes possession of a manufacturing machine. The vendor sends an invoice for $650,000. A. No accounting entry is necessary. B. Capitalize to a different asset account. C. Capitalize to the Machine account. D. Expense. Pays a machine import duty of $35,000 to the government. Pays employees $75,000 for research and development to finalize the new product design. v Receives an invoice for $4,250 from the company that shipped the machine. Pays employees $16,500 to install, customize, and test the new manufacturing machine. Pays $1,200 for a one-year insurance policy for the machine, with coverage beginning when the machine is placed into service on February 16.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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