Please give me answer general accounting Worthington Chandler Company purchased equipment for$36,000. Sales tax on the purchase was $2,400. Other costsincurred were freight charges of $600, repairs of $350 fordamage during installation, and installation costs of $675.What is the cost of the equipment?a. $36,000b. $38,400c. $39,675d. $40,725

Step 1: Define EquipmentEquipment is recognized as a device or machine used by companies to…

Answered: Worthington Chandler Company purchased…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5MC: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to...

See similar textbooks

Similar questions

Marigold Corp. purchased equipment for $31200. Sales tax on the purchase was $1470. Other costs incurred were freight charges of $390, repairs of $690 for damage during installation, and installation costs of $400. What is the cost of the equipment? $31200. $34150. $33460. $32670.
Bonita Industries purchased equipment for $30600. Sales tax on the purchase was $1450. Other costs incurred were freight charges of $360, repairs of $700 for damage during installation, and installation costs of $410. What is the cost of the equipment? $30600. $33520. $32820. $32050.
Swifty Corporation purchased equipment for $43200. Sales tax on the purchase was $2592. Other costs incurred were freight charges of $648, repairs of $378 for damage during installation, and installation costs of $722. What is the cost of the equipment? Select answer from the options below $43200 $45792 $47162 $47540
Warren Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200, and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? Select one: $59,400 $60,600 $66,100 $54,000
A piece of machinery has marked price of P550,000. It was purchased under the term 15%, 10%, and 5% discounts. The cost of freight and installation after deducting the P8,000 sales proceeds of the old machinery which was replaced is P12,000. The new machinery shall be recorded at a cost of A. 411,712 B. 405,000 C. 419,712 D. 397,000
Sandwich Express incurred the following costs related to its purchase of a bread machine.Cost of the equipment $ 20,000Sales tax (8%) 1,600Shipping 2,200Installation 1,400Total costs $ 25,200At what amount should Sandwich Express record the bread machine?a. $20,000.b. $21,600.c. $23,800. d. $25,200.
Mad Hatter Enterprises purchased new equipment for $362,000, terms f.o.b. shipping point. Other costs connected with the purchase were as follows: State sales tax Freight costs Insurance while in transit Insurance after equipment placed in service Installation costs Insurance for the first year of operations Testing $28,900 5, 300 770 1,170 1,850 2, 250 670 Required: Determine the capitalized cost of the equipment. Cost of equipment
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.
Sheridan Company incurs the following costs in purchasing equipment: invoice price, $40,500; shipping, $1,025; installation and testing, $1,600; one-year insurance policy, $2,750.What is the cost of the equipment?
ABC Co purchased an equipment from Hongkong for P100,000. Additional cost included the following: Broker's commission P5,000 Import duties P30,000 Freight on purchase P1,000 Installation cost P3,500 Testing of equipment prior to use P5,000 Promotion and advertising cost of the new product to be processed in using the new equipment, P8,000 Samples generated from testing the equipment were sold for P500. The entry related to the above transaction will include: Cr Cash 144,500 Dr Selling Expenses 8,000 Dr Equipment 152,000 Cr Sales 500
Salman and Adnan Corporation purchased typesetting equipment having a list price of Rs. 306,000 from a manufacturing in the Z area. Credit terms for the transaction were 2/10, n/30. Salman and Adnan Corporation paid the invoice within the discount period, as well as an additional 7% sales tax on the net price. Other payments relating to the acquisition of the equipment were a freight bill of Rs. 3,894 and a labor cost for installing the equipment of Rs. 6,315. During the installation process, an accident caused damage to the equipment, which was repaired at cost of Rs. 7,500. As soon as the equipment was in place, the company obtained insurance on it for a premium of Rs. 2,700. Required: Compute the Cost of Equipment. Calculate the depreciation for first three years using declining method at twice the normal rate, assume that the machine has 6 years useful life and have an estimated value of Rs. 38,000. At the time of disposal (after 6 years) cash Rs. 45,000 were received from Ahmed…
Classy Clocks Ltd. had sales of $1, 840,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $1,180,000, $185,000 and $365,000 respectively. In addition, the company had an interest expense of $280,000 and a tax rate of 35 percent. Its OCF is: a.$475,000 b.No option is correct c.$415,500 d.$150,000

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS