Answer
2. Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes 3,600...
Question 5 Rodgers Company purchased equipment and these costs were incurred: Cash price Sales taxes Insurance during transit Installation and testing Total costs $55,000 3,600 640 860 $60,100 Rodgers will record the acquisition cost of the equipment as $55,000 $58,600. $59,240. $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
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
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.
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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...
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...
Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 59,000 Sales tax 3,600 Freight charges for shipment of equipment 840 Insurance on the equipment for the first year 1,040 Installation of equipment 2,400 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