### Problem 4The Bay View Restaurant has purchased a new dishwasher for its own use.#### Required:Using the following information, determine the proper amount to be capitalized in the asset account Equipment.- **Invoice price of equipment**: $8,000- **Cash discount allowed: 2% of invoice**: $160- **Freight-in paid**: $300- **Speeding ticket given to our truck driver while the driver was delivering equipment**: $25- **Installation costs**: $150- **Sales tax on purchase**: $308- **Repair of damages due to equipment being dropped off truck**: $200### Explanation:To determine the amount to be capitalized, you should consider all necessary expenditures to acquire the asset and prepare it for its intended use. This typically includes the invoice price, minus any discounts, plus freight-in, installation, and sales taxes. Incidental costs like speeding tickets or repairs from mishandling are usually expensed as incurred and not capitalized.

Name: ### Problem 4The Bay View Restaurant has purchased a new dishwasher f
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: ### Problem 4The Bay View Restaurant has purchased a new dishwasher for its own use.#### Required:Using the following information, determine the proper amount to be capitalized in the asset account Equipment.- **Invoice price of equipment**: $8,000-

Costs thats are directly related to the asset will be capitalised.

Business

Accounting

The Bay View Restaurant has purchased a new dishwasher for its own use. Required: Using the following information, determine the proper amount to be capitalized in the asset account Equipment. $8,000 Invoice price of equipment Cash discount allowed: 2% of invoice ol 160 Freight-in paid Speeding ticket given to our truck driver while the driver was delivering equipment 300 25 Installation costs 150 Sales tax on purchase Repair of damages due to equipment being dropped off truck 308 200

The Bay View Restaurant has purchased a new dishwasher for its own use. Required: Using the following information, determine the proper amount to be capitalized in the asset account Equipment. $8,000 Invoice price of equipment Cash discount allowed: 2% of invoice ol 160 Freight-in paid Speeding ticket given to our truck driver while the driver was delivering equipment 300 25 Installation costs 150 Sales tax on purchase Repair of damages due to equipment being dropped off truck 308 200

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

PLEASE PROVIDE THE NEEDED ANSWER AND SOLUTION ASAP PLEASE THANKYOU A company purchased an air conditioner at SY Appliance Center for Php 45,000 and paid an installation fee of Php 6,000 with a delivery charge of Php 1,000. The air conditioner has an estimated life span of 5 years with a residual value of Php 15,000 a. What is the depreciable cost of the air conditioner? b. How much is the annual depreciation?
Your Question: Hua Fat Technology Ltd Case Hua Fat Technology Ltd (Hua Fat) is a global telecommunication equipment manufacturer. The company was granted a piece of land by the government to develop its 5G business. On 1st January 2018, the company started to construct a property at the site. The property was used as a testing laboratory (the laboratory) to serve the company’s customers. The construction costs relating to the laboratory were: $000 Cost of construction materials before trade discount of 10% 50,000 Salary of construction workers for six months to 30 June 2018 4,800 Overheads related to the construction 3,600 Payment to external consultants related to the construction 2,000 Expected dismantling and restoration costs (note 3) 400 Notes: Hua Fat…
Saved Help Save & Exit Submit TB MC Qu. 07-124 (Algo) Valley Spa purchased... Valley Spa purchased $11,200 in plumbing components from Tubman Company. Valley Spa signed a 90-day, 7% promissory note for $11,200. If the note is dishonored, what is the amount due on the note? (Use 360 days a year.) Multiple Choice $11,200 $11,450 $196 $11.396 1,069 15 étv MacBook Air 80 888 DII DE F3 F4 F5 F6 F7 F8 %23 24 2 3 7 8 W E R
A machine was purchased at an invoice price of P 300,000, subject to a 2% cash discount if paid within 10-days. Installation of the machine cost, P 5,000. Cost incurred in testing the machine were P 800 for the operator's time and P 1,500 for materials. The discount was lost because of late payment of the invoice. Sales tax on invoice price, 4%, and depreciation during the testing period, P 2,000. The cost that should be recorded for the machine isP 313,300P315,300P 311.000P 306,000
Please Solve In 20mins
The following costs pertain to a new delivery truck that was purchased on March 31, 2020. All costs were paid in cash. Calculate how much the truck will be capitalized as an asset for the truck. How much will be expensed? You are not required to prepare a journal entry. Cost of Truck $30,000 Delivery charges $1,300 Ongoing gasoline purchases each week $ 200 Sales Tax $2,100
Bought a van, paying $11550 cash as a down payment and signed a 10 month $38500, 9% note payable for the balance. The company paid$770 to have its company logo painted on the side of the van. The residual value is $6050. The old van was sold for $8800; it cost $49500 and acculumated depreciation up to the date of disposal was $44000. what is the journal entry and how did you calculate it?
REVIEW PROBLEM: SALE OF PROPERTY, PLANT AND EQUIPMENT The 1. M. Stoned Company acquired a machine from the Mickey Lobe Corporation on January 1, 20A0. The purchase price of the machine was $100,000, which did not include the 6% sales tax. Installation and delivery charges amounted to $4,000. One of the employees, Bad Wiser, damaged some parts while installing the machine. It cost $500 to repair the damage. The machine has a projected useful life or 10 years. The estimated salvage for the machine is $5,000. REQUIRED: 1. Compute the initial cost of the machine on January 1, 20X6: 100000 +1,000 +6% 6000 110,000 2. Compute the yearly depreciation expense under the straight-line method: 110,000 5,000 10,500 10 3. Show what this machine would look like on the Balance Sheet at the end of 20X9. 4. Assume the machine is sold on December 31, 20X9 for $60,000. Compute the gain or loss on the sale. Show all work clearly!!! (110,000- 60,000)x. 50,000 5. Record the sale.
The following relates to the town of Coupland (Dollar amounts in thousands): Equipment used in a vehicle repair service that provides service to other departments on a cost-reimbursement basis; the equipment has a 5-year life with no salvage value $1,400 Property taxes levied and collected $6,300 Hotel taxes (restricted to promotion of tourism) collected $1,200 Proceeds of bonds to build a parking garage that must be repaid from user charges $4,000 Using the information above to answer the following questions: Revenue to be recognized In internal service fund? A.) 0 B.) $1,400 C.) $140 D.) None of above
Please prepare the following joiurnal entries: Show all calcualtions Bought a van, paying $10500 cash as a down payment and signed a 10 month $32000, 9% note payable for the balanceThe company paid 750 to have its company logo printed on the side of the van. The residual value is $7500. The old van was sold for $7500; it cost $32000 and acculumated depreciation up to the date of disposal was $30000
Bought a van, paying $4200 cash as a down payment and signed a 7 month $9000, 6% note payable for the balance. The company paid$270 to have its company logo painted on the side of the van. The residual value is $3000. The old van was sold for $6000; it cost $19200and acculumated depreciation up to the date of disposal was $18000. what is the journal entry and how did you calculate it?
A company sells an office desk. You are provided with the following information: The original cost of the desk was $3,000. The desk is sold for $1,000. . . The value of the desk is $1,500. The opening UCC balance in Class 8 is $18,000 A new desk is purchased for $2,000. What amount is recorded as a disposition in Class 8? • O O a. $3,000 O b. $1,000 O c. $1,500 O d. d. $18,000 $2,000