On March 1, Bunker Hill Company purchased a new stamping machine with a list price of $78,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $2,100; sales tax paid, $4,720; installation costs, $1,400; routine maintenance during the first month of operation, $2,000. The cost recorded for the machine was: a. $80,920. b. $74,100. c. $82,320. d. $84,320.
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On March 1, Bunker Hill Company purchased a new stamping machine with a list price of $78,000. Please give correct answer for this accounting question
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- On March 1, Bartholomew Company purchased a new stamping machine with a list price of $88,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $3100; sales tax paid, $6,720, installation costs, $1,900; routine maintenance during the first month of operation, $3,000. The cost recorded for the machine was:Raymond Stamping Services purchased a stamping machine priced at $21,500. The firm had to pay a sales tax of $1,200 on this purchase. Raymond also paid the inbound transportation charges of $525 on the new machine, as well as a labor cost of $1,350 to install the machine in the factory. In addition, Raymond had to prepare the site before installation at a cost of $2,125. Determine the cost basis for the new machine for depreciation purposes.O'Connor Company ordered a machine on January 1 at a purchase price of $100,000. On the date of delivery, January 2, the company paid $25,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $1,000 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $6,000. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $10,700. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the…
- O'Connor Company ordered a machine on January 1 at a purchase price of $95,000. On the date of delivery, January 2, the company paid $24,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $1,000 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $5,700. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $10,200. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the…ABC Company purchased a new printing machine on December 1 at an invoice price of P4,000,000 with terms 2/10, n/30. On December 15, Cabiao paid the required amount for the machine. The installation costs were P50,000 and the employees received training on how to use the machine, at a cost of P20,000. Before using the machine to print customers’ orders, a test was undertaken and the paper and ink cost P5,000. What amount should be capitalized as cost of the machine? A. 3,995,000 B. 3,970,000 C. 3,975,000 D. 4,075,000O’Connor Company ordered a machine on January 1 at a purchase price of $40,000. On the date of delivery, January 2, the company paid $10,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $350 for freight on the machine. On January 5, O’Connor paid cash for installation costs relating to the machine amounting to $2,400. On December 31 (the end of the accounting period), O’Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,750. Required: Indicate the effects (accounts, amounts, and + for increase, − for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. Compute the acquisition cost of the machine. Compute the depreciation expense to be reported for the first year. What should be the book value of the machine at the end of the second year?
- O'Connor Company ordered a machine on January 1 at a purchase price of $85,000. On the date of delivery, January 2, the company paid $21,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $900 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $5,100. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $9,100. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the…Hello Tutor Please Provide this answer for this QuestionDenger
- O’Connor Company ordered a machine on January 1 at a purchase price of $40,000. On the date ofdelivery, January 2, the company paid $10,000 on the machine and signed a Iong-term note payablefor the balance. On January 3, it paid $350 for freight on the machine. On January 5, O’Connor paidcash for installation costs relating to the machine amounting to $2,400. On December 31 (the endof the accounting period), O’Connor recorded depreciation on the machine using the straight-linemethod with an estimated useful life of 10 years and an estimated residual value of $4,750.Required:1. Indicate the effects (accounts, amounts, and 1 or 2 ) of each transaction (on January 1, 2, 3,and 5) on the accounting equation. Use the following schedule:Date Assets 5 Liabilities 1 Stockholders’ Equity2. Compute the acquisition cost of the machine.3. Compute the depreciation expense to be reported for the first year.4. What should be the book value of the machine at the end of the second year?A machine was purchased for $7,000, terms 2/10, n/60, FOB vendor's factory. The invoice was paid within the discount period along with $175 of freight charges. The machine was installed on a special concrete base by the employees of the company that bought it. The concrete base and special power connections for the machine cost $575, and the wages of the employees during the period in which they installed the machine amounted to $425. The employees accidentally dropped the machine while moving it onto its special base, causing damages to the machine which cost $125 to repair. As a result of all this, the cost of the machine for accounting purposes was $.Tumeng Co. acquired a piece of equipment for 1,000,000 and incurred the following additional costs: Brokers Commission 50,000 Freight cost 35,000 Freight Insurance 5,000 Installation costs 250,000 Calibration and testing costs 20,000 Training cost of the machine operators 15,000 General and administrative costs 6,000 The samples generated from testing the equipment were sold for 2,000. Requirements: Compute for the initial cost of the equipment