Rizio Company purchases a machine for $10,700, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $107 discount. Transportation costs of $242 were paid by Rizio. The machine required mounting and power connections costing $740. Another $349 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $330 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded $ 0 0
Rizio Company purchases a machine for $10,700, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $107 discount. Transportation costs of $242 were paid by Rizio. The machine required mounting and power connections costing $740. Another $349 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $330 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded $ 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rakesh
Transcribed Image Text:Rizio Company purchases a machine for $10,700, terms 1/10, n/60, FOB shipping point. Rizio paid within
the discount period and took the $107 discount. Transportation costs of $242 were paid by Rizio. The
machine required mounting and power connections costing $740. Another $349 is paid to assemble the
machine, and $40 of materials are used to get it into operation. During installation, the machine was
damaged and $330 worth of repairs were made.
Complete the below table to calculate the cost recorded for this machine.
Amount Included in Cost of Equipment:
Invoice price of machine
Net purchase price
Total cost to be recorded
0
0
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