Rizio Company purchases a machine for $11,200, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $112 discount. Transportation costs of $253 were paid by Rizio. The machine required mounting and power connections costing $774. Another $365 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 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

Rizio Company purchases a machine for $11,200, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $112 discount. Transportation costs of $253 were paid by Rizio. The machine required mounting and power connections costing $774. Another $365 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 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

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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