Kegler Bowling buys scorekeeping equipment with an invoice cost of $150,000. The electrical work required for the installation costs $15,750. Additional costs are $3,150 for delivery and $10,810 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,455. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ Included or Excluded 150,000 [included 15,750 included 3,150 included 10,810 Included 1,455 Excluded $ 154,605 Account Debit Machinery Debit Machinery Debit Machinery Debit Machinery Debit Expense
Kegler Bowling buys scorekeeping equipment with an invoice cost of $150,000. The electrical work required for the installation costs $15,750. Additional costs are $3,150 for delivery and $10,810 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,455. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ Included or Excluded 150,000 [included 15,750 included 3,150 included 10,810 Included 1,455 Excluded $ 154,605 Account Debit Machinery Debit Machinery Debit Machinery Debit Machinery Debit Expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kegler Bowling buys scorekeeping equipment with an invoice cost of $150,000. The electrical work required for the installation costs
$15,750. Additional costs are $3,150 for delivery and $10,810 for sales tax. During the installation, the equipment was damaged and the
cost of repair was $1,455.
Required:
Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred.
Costs
Invoice cost
Electrical work required for installation
Delivery costs
Sales tax
Repair costs
Total recorded cost
Amount
$
Included or
Excluded
150,000 [included
15,750 included
3,150 included
10,810 Included
1,455 Excluded
$ 154,605
Account
Debit Machinery
Debit Machinery
Debit Machinery
Debit Machinery
Debit Expense
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