Rizio Company purchases a machine for $12,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $124 discount. Transportation costs of $280 were paid by Rizio. The machine required mounting and power connections costing $857. Another $404 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $215 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 $12,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $124 discount. Transportation costs of $280 were paid by Rizio. The machine required mounting and power connections costing $857. Another $404 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $215 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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Moby Co. purchased land costing $2,550,000 as a future factory site. Moby paid $240,000 to tear down two buildings on the land. Some Amish folks came along and paid them from the scrap lumber. They paid $2,450 cash for it. Moby paid the lawyer $4,555 in fees for the title investigation and for making the purchase. The architect's fees were $85,600. The cost for the title insurance was $4,600, and liability insurance costs during the construction phase for the factory was $12,640. The excavation cost to clear the ground for the new building was $19,450. They paid the building contractor $8,200,000. The interest costs during the construction phase of the building was $465,000. What should Moby record as cost of the land? Question options: 2,796,705 2,882,305 2,799,155 2,550,000
Anchor Company purchased a manufacturing machine with a list price of $88,000 and received a 2% cash discount on the purchase. The machine was delivered under terms free on board (FOB) shipping point, and transportation costs amounted to $2,800. Anchor paid $3,900 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $5,000 for the first year of operations. What is the cost of the machine? Multiple Choice O O O O $92,940 $97,940 $89,040 $86,240
Legend Service Center just purchased an automobile hoist for $36,800. The hoist has an 8-year life and an estimated salvage value of $3,800. Installation costs and freight charges were $4,100 and $700, respectively. Legend uses straight-line depreciation.The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $72 installed. The cost of a muffler is $38, and the labor cost to install a muffler is $14.(a)Compute the cash payback period for the new hoist. Cash payback period years (b)Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e.g. 10.52%.) Annual rate of return %
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Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $155,00O. The electrical work required for the installation costs $16,275. Additional costs are $3,255 for delivery and $11,170 for sales tax. During the installation, a component of the equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $1,505. What is the total recorded cost of the automatic scorekeeping equipment? Included/ Excluded Total cost DR Machinery DR Expense Invoice cost 155,000 Electrical work required for installation 16,275 Delivery costs 3,255 Sales tax 11,170 Repair costs 1,505 Total 2$ 187,205
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Crane Corp. purchased land as a factory site for $280000. They paid $12200 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1310. Legal fees of $830 were paid for title investigation and making the purchase. Architect's fees were $10370. Title insurance cost $610, and liability insurance during construction cost $650. Excavation costs were $2970. A contractor was paid $677000 to construct the new building. An assessment made by the city for pavement was $1740. Interest costs during construction were $43300. The cost of the land should be recorded at $292330. O $294770. O $296510. O $294070.
Carla Vista Corp. purchased land as a factory site for $330000. They paid $10400 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1330. Legal fees of $840 were paid for title investigation and making the purchase. Architect's fees were $10490. Title insurance cost $620, and liability insurance during construction cost $650. Excavation costs were $3430. A contractor was paid $657000 to construct the new building. An assessment made by the city for pavement was $1690. Interest costs during construction were $43000. The cost of the land should be recorded at Select answer from the options below $342930. $344620. $340530. $342220.
Wildhorse Company purchased a delivery truck. The total cash payment was $36,270, including the following items. Negotiated purchase price Installation of special shelving Painting and lettering Motor vehicle license Annual insurance policy Sales tax Total paid $31,200 1,430 1,170 130 650 1,690 $36,270 Calculate the cost of the truck and the operating costs of the truck.
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Oki Company pays $294,500 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. Paid $19,350 cash for a new component that increased the equipment’s productivity. Paid $4,838 cash for minor repairs necessary to keep the equipment working well. Paid $12,300 cash for significant repairs to increase the useful life of the equipment from four to seven years. Note: Enter debits before credits. Transaction General Journal Debit Credit 1