Pina Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $5,600 $117,600 Freight and insurance cost while in transit 2,240 Cost of moving equipment into place at factory 3,472 Wage cost for technicians to test equipment 4,480 Insurance premium paid during first year of operation on this equipment 1,680 Special plumbing fixtures required for new equipment 8,960 Repair cost incurred in first year of operations related to this equipment 1,456 Construction Material and purchased parts (gross cost $224,000; failed to take 2% cash discount) $224,000 Imputed interest on funds used during construction (stock financing) 15,680 Labor costs 212,800

Pina Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $5,600 $117,600 Freight and insurance cost while in transit 2,240 Cost of moving equipment into place at factory 3,472 Wage cost for technicians to test equipment 4,480 Insurance premium paid during first year of operation on this equipment 1,680 Special plumbing fixtures required for new equipment 8,960 Repair cost incurred in first year of operations related to this equipment 1,456 Construction Material and purchased parts (gross cost $224,000; failed to take 2% cash discount) $224,000 Imputed interest on funds used during construction (stock financing) 15,680 Labor costs 212,800

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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