Homework Answers
| Transactions | Amount | Treatment | Remark |
| Machine purchase | $500000 | Capitalise | Machine comes under fixed asset head, and always capitalise |
| Ordinary Repair | $500 | Expense | Ordinary repair doesn’t increase book value of asset |
| Patent | $45000 | Capitalise | Intangible asset is always capitalised |
| Addition to existing building | $200000 | Capitalise | Increasing book value of building |
| Monthly Salary | $60000 | Expense | General expense |
| Routine maintenance on equipment | $250 | Expense | Routine maintenance doesn’t increase book value of asset |
| Extraordinary Repair | $10000 | Capitalise | Extraordinary Repair increase book value of asset, so capitalise |
Total Capitalise - $ 7,55,000
Total expense - $ 60,750
If you have any query, feel free to ask
Add Answer to:
What is the total balance of its Property, plant, and Equipment? EA2.00 11.2 Jada Company had...
M9-3 Deciding Whether to Capitalize or Expense [LO 9-2, LO 9-6] For each of the following...
M9-3 Deciding Whether to Capitalize or Expense [LO 9-2, LO 9-6] For each of the following items, select whether the cost should be capitalized or expensed. Transactions 1. Purchased a machine, $70,000: gave long-term note. 2. Paid $600 for ordinary repairs. 3. Purchased a patent, $45,300 cash. 4. Paid cash, $200,000, for addition to old building 5. Paid $20,000 for monthly salaries. 6. Paid $250 for routine maintenance. 7. Paid $16.000 for extraordinary repairs
A company purchased property for $100,000. The property included a building, equipment and land. The building...
A company purchased property for $100,000. The property included a building, equipment and land. The building was appraised at $62,000, the land at $45,000, and the equipment at $18,000 for a total appraised value of $125,000. What is the amount of cost to be allocated to the building in the accounting records? $0 $49,600 $62,000 $100,000 A company purchased office equipment for $24,500 and paid $1,470 in sales tax, $550 for installation, $3,200 for a needed adjustment to the equipment,...
For each of the following transactions, select the correct type of expenditure. Type of Expenditure Transactions...
For each of the following transactions, select the correct type of expenditure. Type of Expenditure Transactions (1) Purchased a patent, $4,300 cash. (2) Paid $10,000 for monthly salaries. (3) Paid cash dividends, $20,000. (4) Purchased a machine, $7,000; gave a long-term note. (5) Paid three-year insurance premium, $900. (6) Paid for routine maintenance, $200, on credit. (7) Paid $400 for ordinary repairs. (8) Paid $6,000 for improvements that lengthened the asset's productive life. (9) Paid $20,000 cash for addition to...
A recent annual report for Swifty Air Cargo Company states the following : Property, Plant and...
A recent annual report for Swifty Air Cargo Company states the following : Property, Plant and Equipment Expenditures for major additions, improvements, flight equipment modifications, and specific equipment overhaul costs are capitalized when such costs are determined to extend the useful life of the asset or are part of acquiring the asset. Maintenance and repairs are charged to expenses are incurred. Assume that Shifty made extensive repairs on an existing building and added a new section. The building is a...
Accounting for Plant Assets Ethan Corporation had the following transactions related to its delivery truck: Year...
Accounting for Plant Assets Ethan Corporation had the following transactions related to its delivery truck: Year 1 Jan. 5 Purchased for $28,000 cash a new truck with an estimated useful life of four years and a salvage value of $4,000. Feb. 20 Installed a new set of side-view mirrors at a cost of $80 cash. June 9 Paid $325 for an engine tune-up, wheel balancing, and a periodic chassis lubrication. Aug. 2 Paid a $410 repair bill for the uninsured...
On January 1 Year 1. Milton Manufacturing Company purchased equipment with a list price of $31.000....
On January 1 Year 1. Milton Manufacturing Company purchased equipment with a list price of $31.000. A total of $2,800 was paid for installation and testing. During the first year, Milton paid $4,200 for Insurance on the equipment and another $640 for routine maintenance and repairs. Miton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $5,600. During Year 1 the equipment produced 14,000 units. What is closest to the amount...
9. In 2016, Olive’s Optometry, a sole proprietorship, purchased a piece of business-use property (Equipment A)...
9. In 2016, Olive’s Optometry, a sole proprietorship, purchased a piece of business-use property (Equipment A) for $1,000,000. Olive’s owned Equipment A for more than a year and depreciation deductions totaled $600,000. Assume Olive’s sold Equipment A for $1,150,000 in 2019, and Olive’s paid $50,000 in selling expenses. What is Olive’s recognized gain on the sale of Equipment A in 2019? 10.What amount of Olive’s recognized gain is recaptured as ordinary income (1245 recapture)? 11. What is the amount of Olive’s...
At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts
At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts:Accumulated depreciation—buildings$60,400,000Accumulated depreciation—equipment53,500,000Buildings97,600,000Equipment150,000,000Land21,850,000The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value.During 2022, the following selected transactions occurred:Apr. 1Purchased land for $4.40 million. Paid $1.100 million cash and issued a 3-year, 6% note payable for...
Sparky, Inc. presented the following select balance sheet accounts for Plant, Property & Equi...
Sparky, Inc. presented the following select balance sheet accounts for Plant, Property & Equipment as well as Intangibles as of December 31, 2019. (All balances are after closing): Plant, Property & Equipment: Equipment (net of Accumulated Depreciation) $ 319,200 Intangibles: Patent – FJ190X (net of Accum Amortization) $ 162,000 The following information was reported in Sparky’s 10K filing as of December 31, 2019: The equipment was purchased for $420,000 on October 1, 2018. It has an expected service life of...
Question 1 At January 1, 2017, Blossom Company reported the fallowing property, plant, and equipment accounts:...
Question 1 At January 1, 2017, Blossom Company reported the fallowing property, plant, and equipment accounts: Accumulated depreciation-buildings $60.950,000 Accumulated depreciation-equipment 52,850,000 Buildings 97,300,000 Equipment 150,200,000 Land 24,000,000 The company uses straight-li ne depreciation for buildings and equipment, s estimated to havea year-end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment 10-vear useful life and no salvace value During 2017, the following selected...
M9-3 Deciding Whether to Capitalize or Expense [LO 9-2, LO 9-6] For each of the following items, select whether the cost should be capitalized or expensed. Transactions 1. Purchased a machine, $70,000: gave long-term note. 2. Paid $600 for ordinary repairs. 3. Purchased a patent, $45,300 cash. 4. Paid cash, $200,000, for addition to old building 5. Paid $20,000 for monthly salaries. 6. Paid $250 for routine maintenance. 7. Paid $16.000 for extraordinary repairs
For each of the following transactions, select the correct type of expenditure. Type of Expenditure Transactions (1) Purchased a patent, $4,300 cash. (2) Paid $10,000 for monthly salaries. (3) Paid cash dividends, $20,000. (4) Purchased a machine, $7,000; gave a long-term note. (5) Paid three-year insurance premium, $900. (6) Paid for routine maintenance, $200, on credit. (7) Paid $400 for ordinary repairs. (8) Paid $6,000 for improvements that lengthened the asset's productive life. (9) Paid $20,000 cash for addition to...
On January 1 Year 1. Milton Manufacturing Company purchased equipment with a list price of $31.000. A total of $2,800 was paid for installation and testing. During the first year, Milton paid $4,200 for Insurance on the equipment and another $640 for routine maintenance and repairs. Miton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $5,600. During Year 1 the equipment produced 14,000 units. What is closest to the amount...
Question 1 At January 1, 2017, Blossom Company reported the fallowing property, plant, and equipment accounts: Accumulated depreciation-buildings $60.950,000 Accumulated depreciation-equipment 52,850,000 Buildings 97,300,000 Equipment 150,200,000 Land 24,000,000 The company uses straight-li ne depreciation for buildings and equipment, s estimated to havea year-end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment 10-vear useful life and no salvace value During 2017, the following selected...
Most questions answered within 3 hours.
-
Suppose X follows an exponential distribution with mean 7.5.
Determine the conditional probability P(x > 2.5...
asked 3 minutes ago -
Young softball batters are often instructed to “choke-up on the
bat” by their coach. In terms...
asked 6 minutes ago -
Suppose that you are an official with Mexico's economic
development agency. Write a one-page memo detailing...
asked 37 minutes ago -
If you were an international firm, why would you support the
concept of global free trade?...
asked 52 minutes ago -
Cisco packet tracer
Q1) Do you get any changes of IP address when packet is
traversing...
asked 1 hour ago -
What is the pressure inside a 33.0 L container holding 106.4 kg
of argon gas at...
asked 2 hours ago -
Question no 2
A housekeeping support department budgets its costs at
SR 40,000 per month plus...
asked 2 hours ago -
A 1400Kg sports car accelerates from rest to 90km/h in 7.0s.
What is the average power...
asked 3 hours ago -
For the following reaction, 0.128 moles of
potassium hydrogen sulfateare mixed with
0.504 moles of potassium...
asked 6 hours ago -
1. What is the present value of $400, three years in the future
if the interest...
asked 7 hours ago -
The labor force minus the number of employed equals the number
of unemployed.
a. True
b....
asked 9 hours ago -
Determine the mass in units of grams [g] of 0.49 moles [mol]
of a new fictitious...
asked 9 hours ago