Worthington Chandler purchased equipment for $40k. Sales tax on the purchase was $2400. Other costs incurred were freight charges of $600 repairs of $350 for damage during installation and installation costs of $675. What is the cost of the equupment? a.) 43,675

Worthington Chandler purchased equipment for $40k. Sales tax on the purchase was $2400. Other costs incurred were freight charges of $600 repairs of $350 for damage during installation and installation costs of $675. What is the cost of the equupment? a.) 43,675

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 2: Consigned Goods ABC Co. consigned goods costing P10,000 to XYZ, Inc. Transportation costs of…

A: Given Consigned goods costing P10,000 Transportation cost P2000 Repairs P500 Advance commission…

Q: The Roger's Company incurred the following costs in the acquisition factory production equipment:…

A: It has been provided: Invoice price = $2,675 Purchase discount lost = $75 Freight-in = $400…

Q: mpany pur agreed to allow a 5.25 percent discount because Southwest Milling paid cash. Delivery…

A: An asset is the resource owned by a company in order to earn revenue for the company. There are…

Q: Rochester Flour Mills purchased new equipment and made the following expenditures: Purchase price $…

A: Cost of an asset is the amount paid for an asset and for expenses incurred in putting the asset in…

Q: ast Company has 11,800 items of building supplies on hand that cost $354,000, a bill related to…

A: Supplies in hand has a cost of $354,000 on which $74,000 has been paid and $280,000 is payable.

Q: How much is the input tax in November from purchases in a month of fixed assets?

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: A Textile Company bought equipment for $30,000. The residual value is $5,000. The company assumes…

A: Cost of equipment = $30,000Residual value = $5,000Estimated useful life = 150,000 units

Q: 5. The following information pertains to the January 2, year 2 transaction replacing a print machine…

A: Estimation of relevant costs is important for the evaluation of ongoing projects. It helps one to…

Q: Bonita Company purchased equipment and these costs were incurred: Cash price $65900 Sales taxes 4100…

A: To calculate the acquisition cost of the equipment for Bonita Company, you would sum up all the…

Q: Classy Clocks Ltd. had sales of $1, 840,000. Cost of goods sold, administrative and selling…

A: Operating cash flow (OCF) is a measurement of how much money a company generates through regular…

Q: 1. List price: $44,300; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in:…

A: Capitalization of costs are considered as part of fixed assets instead of stating them as expenses…

Q: 12. RS Inc. sold a total of $23,000 of its products. As of the end of the year, a total of $9,600 of…

A: Balance sheet stands for the statement and information that shows the assets and liabilities of the…

Q: Assume the company estimates 2,000 trees are on the property, and during 2022, 800 trees were cut…

A: Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This…

Q: Blossom Company purchased machinery on January 1 at a list price of $260000, with credit terms 3/10,…

A: Cost of assets is the amount paid for asset, taxes paid, legal fees paid, and for expenses incurred…

Q: S Cala Manufacturing purchases land for $277,000 as part of its plans to build a new plant. The…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: 10.3 (LO 2), AN On January i, 2022, Evers Company purchased the following two machines for use in…

A: The question is based on the concept of Depreciation Accounting. Depreciation is the reduction in…

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: None

A: When a company purchases an asset like a delivery truck, the cost recorded on the balance sheet…

Q: vi.3

A: The objective of the question is to determine the cost at which Provo Co. should record the…

Q: Kegler Bowling buys scorekeeping equipment with an invoice cost of $175,000. The electrical work…

A: Lets understand the basics. As per IAS 16 "Property, plant and equipment", PPE should initially…

Q: Page 9 & page 12! Goodman Company acquired a truck from Harmes Company in exchange for a machine.…

A: Journal entry is a process of initially recording and classifying business transactions into books…

Q: Sheffield Corp. purchased equipment for $50400. Sales tax on the purchase was $3024. Other costs…

A: The following information given in the question: 1. Purchase price = $50,400 2. Sales tax = $3,024…

Q: Whole Grain Bakery purchases an industrial bread machine for $27,000. In addition to the purchase…

A: The initial cost of the machine refers to the total amount spent on acquiring the machine, including…

Q: Carla Vista Co. incurs these expenditures in purchasing a truck: cash price $28,400, accident…

A: Cost of an asset means the cost incurred on the buying of the asset. It includes the cost price, the…

Q: A Textile Company bought equipment for $50,000. The residual value is $7,000. The company assumes…

A: Depreciation expenses are the amount of expenses which are charged on assets during the useful life…

Q: Macey Co. exchanged a piece of equipment that had cost $40,000 (now 75% depreciated) for a truck…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: Company H purchases a new delivery truck for $54000. The sales taxes are $4700. The logo of the…

A: Truck is fixed asset of the company. It will be used in the production for the long term in the…

Q: On Jan. 1, YR7, Scalia Co. trades equipment that cost $80,000 and has, as of December 31, YR6,…

A: When any property plant and equipment is acquired in exchange or part exchange for another asset,…

Q: A company incurred the follow costs related to research and development for the current year:…

A: Note: Testing new models and Legal fees for patent applications are not the research and development…

Q: Put the following entries in the journals of both companies!~ (separately labeled journals) - Dec 1…

A: The journal entries are prepared to record the transactions on regular basis. The discount is…

Question

a.) 43,675

b.) 40k

c.) 42,400

d.) 44,025

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A car was purchased by a newsagent business in May 20X0 for: $ Cost 10,000 Road tax 150 Total 10,150 The business adopts a date of 31 December as its year end. The car was traded in for a replacement vehicle in August 20X3 at an agreed value of $5,000. It has been depreciated at 25% per annum on the reducing balance method, charging a full year's depreciation in the year of purchase and none in the year of sale. What was the profit or loss on disposal of the vehicle during the year ended December 20X3?
im.2
SE9-1 Calculate Amount to Capitalize The Miller Company paid $10, 000 to acquire a 100-ton press. Freight charges to deliver the equipment amounted to $1,500 and were paid by Miller. Installation costs amounted to $570, and machine testing charges amounted to $250. Calculate the amount that should be capitalized to the Equipment account.
Please do not give solution in image format thanku
Question 2. Using terms of 2/10 and n/30, Granite Company spent $133,000 on a machine. The equipment was delivered FOB the shipment location, and the freight charged $3,300. Special installation and electrical connections for the machine are necessary and will cost $11,300. Damages of $2,800 were incurred during equipment installation. Assuming Granite paid during the discount period, calculate the cost reported for this machine. A. $163,000. B. $154,140. C. $150,340. D. $154,440. E. $144,940.
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
nt Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax $46,000 2, 300 Freight charges for shipnent of equipnent Insurance on the equipnent for the first year Installation of equipment 71e 910 1,100 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet > Record the purchase of equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet 11 Record any expenditures not capitalized in the purchase of equipment. Note Peter Oebits before credita Transaction General Journal Debit Credit 21