Kegler Bowling buys scorekeeping equipment with an invoice cost of $155,000. The electrical work required for the installation costs $16,275. Additional costs are $3,255 for delivery and $11,170 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,505. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Answer is complete but not entirely correct. Included or Excluded Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ 155,000 Included Included Included 16,275 3,255 11,170 Included 1,505 Excluded B $ 187,205 x Account 33333 DR Machinery DR Machinery DR Machinery ✔ DR Machinery ✔ DR Expense

Kegler Bowling buys scorekeeping equipment with an invoice cost of $155,000. The electrical work required for the installation costs $16,275. Additional costs are $3,255 for delivery and $11,170 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,505. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Answer is complete but not entirely correct. Included or Excluded Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ 155,000 Included Included Included 16,275 3,255 11,170 Included 1,505 Excluded B $ 187,205 x Account 33333 DR Machinery DR Machinery DR Machinery ✔ DR Machinery ✔ DR Expense

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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