P Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $21,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $11,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? Select one: a. $123,600 b. $125,360 C. $131,760 d. $129,360 e. The answer does not exist

P Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $21,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $11,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? Select one: a. $123,600 b. $125,360 C. $131,760 d. $129,360 e. The answer does not exist

Name: HP Company purchased equipment on January 1 at a list price of $127,0
Uploaded: 2024-03-05T11:50:36.000Z
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Description: HP Company purchased equipment on January 1 at a list price of $127,000, with credit terms2/10, n/30. Payment was made within the discount period and Yocum was given a $21,400 cashdiscount. Yocum paid $6,000 sales tax on the equipment, and paid inst

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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Belvidere Furniture purchased land, paying $95,000 cash and signing a $280,000 note payable. In addition, Belvidere paid delinquent property tax of $5,000, title insurance costing $1,500, and $8,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $400,000. It also paid $51,000 for a fence around the property, $13,000 for a sign near the entrance, and $3,000 for special lighting of the grounds. Read the requirements. Requirement 1. Determine the cost of the land, land improvements, and building. The cost of the land is $ 389,500 The total cost of the land improvements is The cost of the building is $ 67,000
Midnight, Inc. incurred the following costs related to equipment purchased on January 1, 2022: • Purchased equipment for $80,000, terms 2/ 10, net 30. Paid for the equipment on January 5, 2022. • Had the equipment installed and paid the installer $5,000. • Paid the freight bill for the truck that delivered the equipment for $800. • Advertised a new product that will be produced by the new equipment, $1,900. • Sales taxes paid on the equipment amounted to $6,000. • During installation, a part was broken off and had to be replaced for $2,700. • Midnight believes the machine will be useful for 5 years, at which time it will be sold for $5,000. Assuming Midnight, Inc. uses the straight-line method of depreciation, what will depreciation expense on its 2023 income statement be? Select one: a. $35,330 b. $17,580 c. $19,170 d. $34,720 e. $17,040
teele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: • Paid shipping of $1,000• Paid installation fees of $2,000• Pays annual maintenance cost of $200• Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
Steele Corp. purchases equipment for $20,000. Regarding the purchase, Steele recorded the following transactions: • Paid shipping of $900. • Paid installation fees of $1,800. • Pays annual maintenance cost of $280. • Received a 5% discount on $20,000 sales price. Determine the acquisition cost of the equipment.
Steele Corp. purchases equipment for $20,000. Regarding the purchase, Steele recorded the following transactions: • Paid shipping of $800. • Paid installation fees of $1,600. Pays annual maintenance cost of $240. • Received a 5% discount on $20,000 sales price. Determine the acquisition cost of the equipment.
Champion Contractors completed the following transactions Involving equipment. Year 1 January 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $4,800 to install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,400. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $820 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. View transaction list Journal entry…
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Corazon Company purchased an asset with a list price of $17,600. Corazon paid $1,400 of transportation-in cost, $1,700 to train an employee to operate the equipment, and $1,100 to insure the asset against theft after it has been set up in the factory. The asset was purchased under terms 1/20, n/30 and Corazon paid for the asset within the discount period. Based on this information, Corazon would capitalize the asset on its books at: Multiple Choice O O O $19,124. $17,600. $19,300. $20,524.
Fischer Construction purchased a used front-end loader for $42,000, terms 1/10, n/30, F.O.B. shipping point, freight collect.Fischer paid the freight charges of $405. One week after the machine was delivered, a check for $41,580 was sent to the seller.The loader required a new battery, which cost Fischer $225. Fischer also spent $360 to have the company name printedon the loader and $563 for one year’s insurance coverage on it. Fischer hired a new employee to operate it at a wage of $19 per hour;the employee spent one morning (four hours) practicing with the machine and went to work at a construction site that afternoon.Calculate the amount at which the front-end loader should be reported on the company’s balance sheet.
Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $4,800 to install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,400. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $820 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. RE
Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,810. The selleragreed to allow a 6.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight costamounted to $2,840. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $800. The loader operatoris paid an annual salary of $29,210. The cost of the company’s theft insurance policy increased by $2,180 per year as a result ofacquiring the loader. The loader had a four-year useful life and an expected salvage value of $13,500.Requireda. Determine the amount to be capitalized in an asset account for the purchase of the loader.b. Record the purchase in general journal format. Required A Required B Complete this question by entering your answers in the tabs below.