Homework Answers
The cost of an equipment which is an asset includes all the expenditure necessary to bring that asset to ready to use condition.
So all the expenses including sales tax, insurance, transportation and installation and testing are necessary to bring the asset in put to use condition.
Hence total cost of the equipment to be recognised in books shall be $60,100
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Question 5 Rodgers Company purchased equipment and these costs were incurred: Cash price Sales taxes Insurance...
2. Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes 3,600...
2. Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes 3,600 Insurance during transit 640 Installation and testing 860 Sheldon will record the equipment at A) $55,000 B) $58,600 C) $59,240 D) $60,100
Sparrow Company purchased equipment and these costs were incurred: *Cash price $40,000 Sales taxes 2,600 *...
Sparrow Company purchased equipment and these costs were incurred: *Cash price $40,000 Sales taxes 2,600 * Testing and installation 500 Insurance covering the asset for two years 500 Freight costs 250 Insurance during transit 50 Sparrow should record the acquisition cost of the equipment as O $43,400 O $43,900 O $43,850 O$43,150 O $43,600
Sheridan Company purchased equipment and these costs were incurred: Cash price $59000 Sales taxes 4900 Insurance...
Sheridan Company purchased equipment and these costs were incurred: Cash price $59000 Sales taxes 4900 Insurance during transit 780 Installation and testing 1950 Total costs $66630 What amount should be recorded as the cost of the equipment? $66630. $63900. $64680. $59000.
Multiple Choice Question 72 Vaughn Company purchased equipment and these costs were incurred: Cash price $64900 Sal...
Multiple Choice Question 72
Vaughn Company purchased equipment and these costs were
incurred:
Cash price
$64900
Sales taxes
3200
Insurance during transit
620
Installation and testing
890
Total costs
$69610
Vaughn will record the acquisition cost of the equipment as
$68720.
$69610.
$64900.
$68100.
Johnson Company purchased factory equipment with an invoice price of $150,000. Other costs incurred were freight...
Johnson Company purchased factory equipment with an invoice price of $150,000. Other costs incurred were freight costs, $1,200; installation wiring and foundation, $2,100; material and labor costs in testing equipment, $700; oil lubricants and supplies to be used with equipment, $500; fire insurance policy covering equipment, $1,400. The equipment is estimated to have a $5,000 salvage value at the end of its 10-year useful service life. Requirements: 1) Compute the acquisition cost of the equipment. Clearly identify each element of...
Blossom Company purchased factory equipment with an invoice price of $81,900. Other costs incurred were freight cos...
Blossom Company purchased factory equipment with an invoice price of $81,900. Other costs incurred were freight costs, $1,040; installation wiring and foundation, $2,500; material and labor costs in testing equipment, $800; oil lubricants and supplies to be used with equipment, $680; fire insurance policy covering equipment, $1,710. The equipment is estimated to have a $6,000 salvage value at the end of its 8-year useful service life. Compute the acquisition cost of the equipment. Acquisition cost of the equipment (Round answer...
A company purchased new equipment for $68,000. The company paid cash for the equipment. Other costs...
A company purchased new equipment for $68,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,400; sales tax paid $4,600; and installation cost, $3,300. The cost recorded for the equipment was: Multiple Choice $68,000 $69,400. $74,000. $77,300. A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title insurance of $2,200 were also incurred. The $8,500 in property taxes includes $5,400 in back taxes paid by the...
Bramble Corp. purchased factory equipment with an invoice price of $79,100. Other costs incurred were freight...
Bramble Corp. purchased factory equipment with an invoice price of $79,100. Other costs incurred were freight costs, $1,130; installation wiring and foundation, $2,120; material and labor costs in testing equipment, $880; oil lubricants and supplies to be used with equipment, $820; fire insurance policy covering equipment, $1,500. The equipment is estimated to have a $6,000 salvage value at the end of its 10-year useful service life. Compute the acquisition cost of the equipment. Acquisition cost of the equipment (Round answer...
Sunland Company provides for bad debt expense at the rate of 2% of accounts receivable. The...
Sunland Company provides for bad debt expense at the rate of 2% of accounts receivable. The following data are available for 2018: Allowance for doubtful accounts, 1/1/18 (Cr.) $ 13100 Accounts written off as uncollectible during 2018 9600 Ending accounts receivable 1198000 The Allowance for Doubtful Accounts balance at December 31, 2018, should be 2- Crane Company purchased equipment and these costs were incurred: Cash price $65400 Sales taxes 4100 Insurance during transit 660 Installation and testing 830 Total costs...
Hunt Company purchased factory equipment with an invoice price of $90,000. Other costs incurred were freight...
Hunt Company purchased factory equipment with an invoice price of $90,000. Other costs incurred were freight costs, $1,100; installation wiring and foundation, $2,200; material and labor costs in testing equipment, $700; oil lubricants and supplies to be used with equipment, $500; fire insurance policy covering equipment, $1,400. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life. Compute the annual depreciation expense of the factory equipment using the straight-line method.
2. Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes 3,600 Insurance during transit 640 Installation and testing 860 Sheldon will record the equipment at A) $55,000 B) $58,600 C) $59,240 D) $60,100
Sparrow Company purchased equipment and these costs were incurred: *Cash price $40,000 Sales taxes 2,600 * Testing and installation 500 Insurance covering the asset for two years 500 Freight costs 250 Insurance during transit 50 Sparrow should record the acquisition cost of the equipment as O $43,400 O $43,900 O $43,850 O$43,150 O $43,600
Multiple Choice Question 72
Vaughn Company purchased equipment and these costs were
incurred:
Cash price
$64900
Sales taxes
3200
Insurance during transit
620
Installation and testing
890
Total costs
$69610
Vaughn will record the acquisition cost of the equipment as
$68720.
$69610.
$64900.
$68100.
Blossom Company purchased factory equipment with an invoice price of $81,900. Other costs incurred were freight costs, $1,040; installation wiring and foundation, $2,500; material and labor costs in testing equipment, $800; oil lubricants and supplies to be used with equipment, $680; fire insurance policy covering equipment, $1,710. The equipment is estimated to have a $6,000 salvage value at the end of its 8-year useful service life. Compute the acquisition cost of the equipment. Acquisition cost of the equipment (Round answer...
A company purchased new equipment for $68,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,400; sales tax paid $4,600; and installation cost, $3,300. The cost recorded for the equipment was: Multiple Choice $68,000 $69,400. $74,000. $77,300. A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title insurance of $2,200 were also incurred. The $8,500 in property taxes includes $5,400 in back taxes paid by the...
Bramble Corp. purchased factory equipment with an invoice price of $79,100. Other costs incurred were freight costs, $1,130; installation wiring and foundation, $2,120; material and labor costs in testing equipment, $880; oil lubricants and supplies to be used with equipment, $820; fire insurance policy covering equipment, $1,500. The equipment is estimated to have a $6,000 salvage value at the end of its 10-year useful service life. Compute the acquisition cost of the equipment. Acquisition cost of the equipment (Round answer...
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