Oaktree Company purchased new equipment and made the following expenditures: Purchase price $45,000 2,200 Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment 700 900 1,000 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures.
Q: a) Darling Paper Container, Inc. purchased several machines at a total cost of $300,000. The…
A:
Q: Nelson Company purchased equipment and incurred the following costs: Cash price = $55,000 Sales…
A: Definition: Property, plant, and equipment: These assets are long-lived economic resources which are…
Q: HnH Solutions acquired a machine by making the following payments: Net cash price Rs. 116,000…
A: Journal is a place where journal entries are recorded in the book keeping system before ledger…
Q: Equipment was purchased for $75,000. Freight charges amounted to $3,500 and there was a cost of…
A: Initially Property Plant & Equipment are recorded at cost , which includes the purchase price of…
Q: Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid…
A: The journal entries are prepared to record the transactions on regular expenses. The major expenses…
Q: Oki Company pays $285,200 for equipment expected to last four years and have a $30,000 salvage…
A: The minor expenses related to fixed assets are recorded as repairs and maintenance expenses. The…
Q: On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price…
A:
Q: Dexter Industries purchased packaging equipment on January 8 for $218,000. The equipment was…
A: Working for Part-1: Straight line depreciation expense = (Cost - Residual Value) / Years = ($218,000…
Q: At the beginning of the year jimmy jones company purchased a machine for $35,000. The following…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following…
A: Introduction: Acquisition costs include sums spent for permanent assets, fees incurred when…
Q: The plant and machinery at cost account of a business for the year ended 30 June 20X4 was as…
A: We have the following information: (1st July, 20X3) Opening Balance: $240,000 (30th June 20X4)…
Q: Keaubie Co. purchased machinery at a cost of $175,000 cash. Other costs included: taxes,…
A: In bookkeeping, depreciation alludes to two parts of a similar idea: first, the real diminishing of…
Q: Mercury Delivery Service completed the following transactions involving equipment. Year 1 Jan. 1…
A: Depreciation is defined as the reduction in the value of assets because of the continuous use or…
Q: Xpress Delivery Service completed the following transactions and events involving the purchase and…
A: Prepare the journal entries:
Q: Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $…
A: Given information is: Orion Flour Mills purchased a new machine and made the following…
Q: Padre, Inc., purchased a used piece of heavy equipment for $25,000. Delivery of the equipmentto…
A: Annual depreciation refers to the amount of depreciation that is required to be charged on the value…
Q: Trinkle Company made several purchases of long-term assets during the year. The details of each…
A: Costs are classified as capital cost and operational cost. Cost which is capital in nature is added…
Q: Yoshi Company completed the following transactions and events involving its delivery trucks. Year…
A: Depreciation expense for year 1 ( cost - salvage value)/ Estimated useful life…
Q: Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales…
A: The cost of equipment includes the purchase price, sales tax, freight costs, installation costs or…
Q: exter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected…
A: 1) a) Straight Line Method Depreciation expense= Cost - Estimated Salvage Value / Usefulness of…
Q: truck
A: Meaning of Cost of the Asset Cost of the asset includes all the costs that are incurred to bring the…
Q: Falther Inc. acquired a new processing machine: Invoice cost P1,800,000 Transportation cost…
A: As per the capitalisation of fixed assets, all costs that are incurred for purchase of fixed assets…
Q: Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales…
A: Introduction: Accounting journal entries are used for physical payment transactions in the…
Q: Dexter Industries purchased packaging equipment on January 8 for $72,000. The equip- ment was…
A: Three methods of depreciation are:Straight-line method: Under the straight-line method of…
Q: Yoshi Company completed the following transactions and events involving its delivery trucks. Year…
A: Introduction: Depreciation is the reduction in the price of a tangible item owing to a range of…
Q: Dexter Industries purchased packaging equipment on January 8 for $72,000. The equip-ment was…
A: 1. a. Compute the depreciation using straight-line method as follows: The depreciation under this…
Q: Orion Flour Mills purchased a new machine and made the following expenditures:…
A:
Q: Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1…
A: Journal entry refers to the first entry in the accounting cycle. Journal entry is a book of original…
Q: At the end of the reporting period, Pinky Corp. shows the following account for machinery it had…
A: Property , Plant and Equipment: The cost of property, plant, and Equipment incorporates the…
Q: Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid…
A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…
Q: Champion Contractors completed the following transactions involving equipment Year 1 January 1 Paid…
A: Depreciation expense using straight line method : = ( Cost - salvage value ) / Useful Life Revised…
Q: On October 1, Bentley Delivery Services acquired a new truck with a list price (fair market value)…
A: (a)journalize the entries to record he current depreciation of the old truck to the date of trade-in…
Q: Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,000. The…
A: Determine the amount of depreciation for three years ending.
Q: Wilbert Company purchased factory equipment with an invoice price of $90,000. Other costs incurred…
A: Total Acquisition cost of equipment = Invoice price + Freight cost + Installation, wiring and…
Q: Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase…
A: Assets are the resources owned by an entity in order to run its business operations.
Q: Daly Publishing Corporation recently purchased a truck for $43,000. Under MACRS, the first year's…
A: Depreciation refers to the gradual decrease in the value of an asset over time. Depreciation of an…
Q: Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price…
A:
Q: HnH Solutions acquired a machine by making the following payments: Net cash price Rs. 116,000…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: P Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10,…
A: Cost of assets includes purchase price , taxes (if credit not available) , installation charges or…
Q: Champion Contractors completed the following transactions involving equipment. Year 1 Paid $314,000…
A: Formulas that are used :-
Q: the total cost of equipment.
A: Cost of fixed asset include its purchase price, non-refundable taxes incurred for purchase, cost of…
Q: On October 1, Hot Springs Co., a water distiller, acquired new bottling equipment with a list price…
A: given that, The fair market value of new equipment = $462000 Cost of old equipment = $336000 given…
Q: Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales…
A: Cost of the Equipment = Purchase Price + Sales Tax + Freight Charges for shipment of machine +…
Q: Keaubie Co. purchased machinery at a cost of $175,000 cash. Other costs included: taxes, $15,500,…
A: Cost of machinery = Purchase price + Taxes paid +Freight charges + Transit insurance = $ 175,000 +…
Q: Orion Flour Mills purchased a new machine and made the following expenditures: Purchase…
A: The cost of machinery includes expenses that are incurred for making machinery ready to use. It…
Q: Champion Contractors completed the following transactions involving equipment. Year 1 January 1…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.Oaktree Company purchased new equipment and made the following expenditures:Purchase price $45,000Sales tax 2,200Freight charges for shipment of equipment 700Insurance on the equipment for the first year 900Installation of equipment 1,000The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The otherexpenditures listed above were paid in cash.Required:Prepare the necessary journal entries to record the above expenditures.Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 $50,000 2,700 750 958 1,500 2 Record the purchase of equipment.
- Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheetOrion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 66,000 Sales tax 5,550 Shipment of machine 910 Insurance on the machine for the first year 610 Installation of machine 1,820 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)Rochester Flour Mills purchased new equipment and made the following expenditures: Purchase price $ 59,000 Sales tax 5, 200 Shipment of equipment 840 549 Insurance on the equipment for the first year i Installation of equipment 1,680 Required: Record the expenditures. All expenditures were paid in cash. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the expenditures. All expenditures were paid in cash. Note: Enter debits before credits Transaction General Journal Debit Credit
- Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 75,000 Sales tax 6,000 Shipment of machine 1,000 Insurance on the machine for the first year 700 Installation of machine 2,000 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine.Orion Flour Mills purchased a new machine and made the following expenditures: $55,000 5,000 Purchase price Sales tax Shipment of machine 800 Insurance on the machine for the first 500 year Installation of machine 1,600 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Trinkle Company, Incorporated made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $36,100; terms: 2/10 n/30; paid within discount period. Transportation-in: $740. Installation: $580. Cost to repair damage during unloading: $615. Routine maintenance cost after six months: $260. Basket Purchase of Copier, Computer, and Scanner for $51,900 with Fair Market Values Copier, $22,500. Computer, $11,250. Scanner, $28,750. Land for New Warehouse with an Old Building Torn Down Purchase price, $75,700. Demolition of building, $5,070. Lumber sold from old building, $1,090. Grading in preparation for new building, $8,000 Construction of New Building Construction of new building, $231,000 RequiredIn case of office equipment, determine the amount of cost to be capitalized in the asset accounts. In case of basket purchase, determine the amount of cost to be capitalized in the asset accounts. In case of land,…
- Recording Subsequent Expenditures The plant building of Xon Corporation is old (estimated remaining useful life is 12 years) and needs continuous maintenance and repairs. The company’s accounts show that the building originally cost $300,000; and accumulated depreciation was $200,000 at the beginning of the current year. During the current year, expenditures relating to the plant building are made. Prepare the journal entry to record each of the following expenditures , assuming all items are paid in cash.Instructions Round your answers to the nearest whole number Record debit accounts in alphabetical order using the first letter of the account name. 1. Continuing, frequent, and low-cost repairs: $17,000 Account Name Dr. Cr. 2. Added a new storage shed attached to the building; estimated useful life of 8 years: $36,000 Account Name Dr. Cr. 3. Removed roof with original cost, $40,000; replaced it with…Brick Oven Corporation made the following expenditures during the first month of operations:Attorneys’ fees to organize the corporation $ 9,000Purchase of a patent 40,000Legal and other fees for transfer of the patent 2,500Advertising 80,000Total $ 131,500Required:Record the $131,500 in cash expenditures.Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $35,300; terms: 2/10 n/30; paid within discount period. Transportation-in: $790. Installation: $570. Cost to repair damage during unloading: $660. Routine maintenance cost after eight months: $240. Basket Purchase of Copier, Computer, and Scanner for $46,400 with Fair Market Values Copier, $23,478. Computer, $8,944. Scanner, $23,478. Land for New Warehouse with an Old Building Torn Down Purchase price, $77,500. Demolition of building, $4,540. Lumber sold from old building, $1,570. Grading in preparation for new building, $9,600. Construction of new building, $235,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.