**Transcription for Educational Website:**---**Title: Journalizing the Acquisition of a New Machine**The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for:- a. $90,545- b. $89,453- c. $86,856- d. $98,674---*Explanation:*When acquiring a new machine for a business, various costs must be taken into account to determine the total cost of the asset. The costs typically include the purchase price, transportation costs, installation costs, and any special acquisition fees. All these costs are added together and journalized as a debit to the asset account.For the problem given:1. **Purchase Price:** $80,5452. **Transportation Costs:** $9,2213. **Installation Costs:** $6,3114. **Special Acquisition Fees:** $2,597**Total Cost:** $80,545 + $9,221 + $6,311 + $2,597 = $98,674Thus, the correct journal entry to the asset account would be with a total debit of $98,674, which corresponds to option d. $98,674.

Asset is the resource owned by an entity which are held for generating future revenues.

The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for Oa. $80,545 Ob. $89,453 Oc. $86,856 Od. $98,674

The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for Oa. $80,545 Ob. $89,453 Oc. $86,856 Od. $98,674

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A machine with a cost of $141,000 and accumulated depreciation of $90,500 is sold for $61,000 cash. The amount that should be reported in the operating activities section reported under the direct method is: Multiple Choice $61,000. $10,500. $50,500.
A fixed asset with a cost of $24,737 and accumulated depreciation of $22,263 is traded for a similar asset priced at $60,057 (fair market value) in a transaction with a commercial substance. Assuming a trade-in allowance of $4,264, at what cost will the new equipment be recorded in the books? a.$4,264 b.$1,790 c.$60,057 d.$20,473
Acquisition of Equipment - A machine cost $1,200,000, has annual depreciation of $200,000, and has accumulated depreciation of $850,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $275,000, it is exchanged for a machine with a fair value of $1,350,000 and the proper amount of cash is paid. The exchange had commercial substance. Required: Prepare the entry to record the acquisition of the new equipment.
Amortization of the intangible assets is calculated on an annual basis using the straight-line method. Please inlcude all steps of calculation for my reference. Thanks! Jounral entries too.
A purchase of equipment for $21100 also involves freight charges of $470 and installation costs of $2930. The estimated salvage value and useful life are $2280 and 5 years, respectively. Under the straight-line method, how much is annual depreciation expense? $4209 O $3855 $4444 O $4325
The following are probable salvage value estimates for an asset: $4,500 with a probability of 33%, and $7,800 with a probability of 67%. Compute the "expected" salvage value of the asset. OA. $5,589 OB. $6,150 OC. $3,741 OD. $6,711
i need help with this question please
A fixed asset with a cost of $25,974 and accumulated depreciation of $23,377 is traded for a similar asset priced at $40,828 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,683, the cost basis of the new asset is Select the correct answer. $43,425 $38,742 $40,828 $36,145
Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and accumulated depreciation of $30,000. This equipment was traded in for new equipment with a list price of $60,000. The new machine can be purchased without a trade-in for $56,250 cash. The difference between the fair value of the new asset and the market value of the old asset will be paid in cash. Prepare the entry to record acquisition of the new machine under each of the following separate cases. a. The new machine is purchased for cash with no trade-in. b. The transaction has commercial substance. The old equipment is traded in, and $37,500 cash is paid. c. The same as in part b except that the transaction lacks commercial substance. a. Account Name Dr. Cr. Answer Answer b. Account Name Dr. Cr. Answer Answer Answer Answer Answer Answer Answer Answer C. Account Name Dr. Cr. Answer…
The following information was provided relating to an asset: Acquisition date: 1 January 20X1 Acquisition cost: $76,000 Residual value: $6,000 Estimated useful life: 5 years Service hours: 35,000 Productive output in units: 7,000 Actual Data: ServiceHours UnitsProduced 20X1 4,700 400 20X2 6,900 1,100 20X3 7,200 1,600 20X4 7,600 1,800 20X5 8,600 2,100 35,000 7,000 Required:Prepare the journal entries to record depreciation expense for each year of the asset’s life, using the double declining balance method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
quipment with an estimated residual value at acquisition of $15,000 was sold on December 31, 2013, for $20,000 cash. The following data were available at the time of sale: Acquisition cost $100,000 Accumulated depreciation on December 31, 2013, after adjustment 85,000 When this transaction is recorded, it should include a a. Credit of $5,000 to the Gain on Disposal account. b. Credit of $20,000 to the Equipment account. c. Debit of $20,000 to the Accumulated Depreciation account. d. Debit of $80,000 to the Loss on Disposal account.
Computing Depreciation Using Various Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are used for equipment purchased on January 1, 2020. Cost and residual value Estimated service life: Acquisition cost $26,250 Years 5 Residual value $1,050 Service hours 21,000 Productive output (units) 50,400 e. Double-declining-balance method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 Answer Answer Answer Answer Answer