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Q: Carley Company purchases a new delivery truck for $45,000. The sales taxes are $3,000. The logo of…
A: Capital expenditure: It is the cost acquired from fixed assets. It includes of cost of purchase and…
Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in…
A: Solution: Cost of land to be reported = $377,305 Cost of land = cash paid to acquire land +…
Q: a. Paid $40,000 cash to replace a motor on equipment that extends its useful life by four years. b.…
A:
Q: A man purchased a secondhand truck with a cash price of P350, 000 for his hollow block business. He…
A: Cash Price = P 350,000 Down payment = 20% Loan amount = 350000*(1-0.20) =…
Q: Rizio Co. purchases a machine for $14,800, terms 1/10, n/60, FOB shipping point. Rizio paid within…
A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…
Q: a 1. Calculate the net income for Year 1. (Round "Per Unit Cost" to 3 decimal places a-2. Which…
A: Net Income refers to the total revenue or earnings generated by a company after deducting all…
Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in…
A: Solution:- Calculation of the cost of land reported on the balance sheet as follows:-
Q: Wildhorse Co. incurs these expenditures in purchasing a truck: cash price $29,260, accident…
A: Given: Cash price = $29,260 Sales tax = $1,320 Accident insurance = $2,220 Motor vehicle license =…
Q: Rizio Company purchases a machine for $13,800, terms 2/10, n/60, FOB shipping point. Rizio paid…
A: The cost of the machine: When a business purchases a machine, it is recorded at cost. The cost…
Q: Sheffield Corp. purchased a delivery van with a $79000 list price. The company was given a $5800…
A: Given: List price = $79,000 Cash discount = $5,800 Sales tax = $2,600 Insurance = $1,800
Q: Rizio Company purchases a machine for $11,200, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: All costs which are incurred from the time of purchase of machine up to the point of installation to…
Q: Pool Corporation, Incorporated, is the world's largest wholesale distributor of swimming pool…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases…
A: An accounting equation is an equation representing that the total assets of the company are equal to…
Q: Karl bought a building and the land on which it is located for $186,100 cash. The land is estimated…
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger…
Q: 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2.…
A: There are two types of Expenditure: a. Capital Expenditure: Expenditures which impact Long Term,…
Q: ransportation costs of $334 were paid 2 is paid to assemble the machine, and ed and $350 worth of…
A: Answer : Cost recorded for the machine : Amount included in the cost of the equipment Invoice…
Q: Mercury Delivery Service completed the following transactions involving equipment. Year 1 Jan. 1…
A: Depreciation is defined as the reduction in the value of assets because of the continuous use or…
Q: Wildhorse Co. purchases a new delivery van for $83000. The sales taxes are $5250. The logo of the…
A: The costs incurred for assets to make it ready for use, are included in the cost of non cash assets.…
Q: Xpress Delivery Service completed the following transactions and events involving the purchase and…
A: Prepare the journal entries:
Q: Explain how each of these costs would be accounted for.
A: Cost: It is the economic value incurred by a company to manufacture a product or to render a…
Q: Steve's Outdoor Company purchased a new delivery van on January 1 for $62,000 plus $5,300 in sales…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Wildhorse Co. incurs these expenditures in purchasing a truck: cash price $24,300, accident…
A: Cost of the Truck = Cash price + Sales tax + Painting and lettering
Q: BE10-2 Rich Castillo Company incurs the following expenditures in purchasing a truck: cash price…
A: Cost is the price which is paid for a product or service.
Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $37,000 in…
A: Cost of land is the value that is incurred to acquire or make the asset ready to use. It includes…
Q: Hummer Company purchased a delivery truck. The total cash payment was $30,000, including the…
A:
Q: excise department. Calculate the rate of return over a 5-year period for the company
A: Calculating IRR using the CF in scientific calculator. CF0= -Initial investment CF1 to CF5= Profit…
Q: The following transactions occurred during the year. Record these transactions. HHL took out a…
A: Journal entry:- A journal entry is the process of recording business transaction into an accounting…
Q: Rizio Company purchases a machine for $10,600, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Note: The amount paid for first-year insurance will not capitalize with the machinery because the…
Q: Rizio Company purchases a machine for $12,400, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Cost of assets: As per the generally accepted accounting principles, the cost of assets includes all…
Q: Hartman Delivery Service purchased a new delivery truck for $29,000. At the time of purchase,…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Consider each of the transactions below. All of the expenditures were made in cash. The Edison…
A: All the cost related to research phase of a intangible asset will be part of expenses. Cost related…
Q: On November 1, 2021, Jonas Company established an agency in Laguna sending its merchandise samples…
A: Net Income of the agency for the month of November 2021 = P12,210 (Option - d)
Q: Rizio Company purchases a machine for $9,600, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Cost of machine includes the purchase price , freight and other ancillary costs incurred to make it…
Q: Rizio Company purchases a machine for $10,000, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…
Q: Indicate the effects (accounts, amounts, and + or −) of each transaction on the accounting equation.
A: Fundamental Accounting Equation; Assets equal the sum of liabilities and shareholder's equity is the…
Q: Three different companies each purchased trucks on January 1, Year 1, for $76,000. Each truck was…
A: a-1 : Net income for year 1 Company A Company B Company C Cash revenue earned 65,000 65,000…
Q: Rizio Company purchases a machine for $14,400, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…
Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $42,000 in…
A: The cost of a capital asset includes the purchase cost of the asset and any other costs incurred to…
Q: Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe.…
A: As per IAS 16, the assets are acquired, and consideration is deferred, the cash market price of such…
Q: Lahore traffic police collected Rs. 44,00,000/- in terms of fines for traffic violations in 2018.…
A: In this question we need to compute the rate of return over a 5-year period for the company that…
Q: Wildhorse Co. purchased a delivery truck. The total cash payment was $45,042, including the…
A: As per IFRS 16 Property plant and equipment, the cost of equipment includes cost of purchase and…
Q: Eddie bought a used Ford Explorer for $22,000. She put down $7,000 and paid $290 for 60 months. The…
A: Finance Charge - Finance charge is a form of interest charged on the post payment option. There is…
Q: Jose purchased a delivery van for his business through an online auction. His winning bid for the…
A: Cost basis refers ot the cost incurred for purchase of the capital asset in addition to the original…
Q: sheffield Corp. incurs the following expenditures in purchasing a truck: cash price $53,000,…
A: Note: Cost of accident insurance and motor vehicle license will not be capitalized with the cost of…
wellco paid $14,500 in cash for a delivery truck
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- A machine is purchased for $70,000. It had a $8,000 cash discount by the dealer, and had a $2,000 sales tax. Annual insurance on the machine is $1,000. She also bought new tires for the machine, costing $3,500. How much will the machine increase account by?Three different companies each purchased trucks on January 1, Year 1, for $74,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 78,000 miles in Year 1, 55,000 miles in Year 2, 50,000 miles in Year 3, and 70,000 miles in Year 4. Each of the three companies earned $69,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double- declining-balance depreciation, and company C uses units-of- production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31, Year 3, balance sheet. c-2. Which company will report the highest book…Sandhill Co. purchases a new delivery truck for $78000. The sales taxes are $4400. The logo of the company is painted on the side of the truck for $1000. The truck’s annual license is $100. The truck undergoes safety testing for $240. What does Sandhill record as the cost of the new truck?
- An enterprising engineer purchased a fleet of second-hand trucks for Php78,000. Payment was made by an immediate cash payment of Php5,000 and twelve month-end payments of Phpó,486 each. Another dealer offered to finance the same purchase at an interest rate of 0.75% per month on the unpaid balance. Which offer should the engineer accept?A company purchased new equipment for $62,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,100; sales tax paid $3,400; and installation cost, $2,700. The cost recorded for the equipment was: Multiple Cholce $69,200. $66,500. $62,000. $63,100.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
- ABC purchased a new machine on a deferred payment basis using a zero-interest-bearing note. ABC made a down payment of $5,000 and will make ten monthly installment payments of $14,000 each. The present value of the ten payments is $130,000. ABC paid $6,000 to install the machine and $1,200 to repair damage during installation. Prepare the journal entry to record the purchase. Compute the amount that will be debited to the machinery account. $________________Wildhorse Company incurs these expenditures in purchasing a truck: cash price $46,000, accident insurance (during use) $2,200, sales taxes $4,400, motor vehicle license $300, and painting and lettering $1,700 What is the cost of the truck? Cost of the truck $Rizio Co. purchases a machine for $9,500, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $95 discount. Transportation costs of $215 were paid by Rizio. The machine required mounting and power connections costing $657. Another $310 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $210 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
- On February 14, Garcia Associates Co. paid $2,300 to repair the transmission on one of its delivery vans. In addition, Garcia paid $450 to install a GPS system in its van. Journalize the entries for the transmission and GPS system expenditures.Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the yearThree different companies each purchased trucks on January 1, Year 1, for $54,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 76,000 miles in Year 1, 65,000 miles in Year 2, 42,000 miles in Year 3, and 71,000 miles in Year 4. Each of the three companies earned $43,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31, Year 3, balance sheet. c-2. Which company will report the…
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