QUESTION 10
On September 28, Reeve Incorporated purchased equipment with a purchase price of $39,787 plus 5% sales tax. Shipping terms were FOB Shipping Point and shipping charges were $265. Installation was completed, and the new equipment was placed in service on October 1. Installation costs totaled $935. The shipping and installation costs were paid for in cash on September 28. The equipment purchase price, including sales tax, was paid for by issuing a 120 day 6% Note Payable on October 1. Based on past experience,the equipment is expected to have a useful life of 7 years, at which time it will have an estimated worth of $4,128. The equipment will be depreciated using the Straight Line method.
Assuming a 360-day year for your calculation, what is the Accrued Interest Expense on the Note on October 31?
QUESTION 10 On September 28, Reeve Incorporated purchased equipment with a purchase price of $39,787 plus...
QUESTION 8 On June 28, Carpenter Corporation purchased equipment with a purchase price of $36,626 plus 6% sales tax. Shipping terms were FOB Shipping Point and shipping charges were $327. Installation was completed, and the new equipment was placed in service on July 1. Installation costs totaled $949. The shipping and installation costs were paid for in cash. The equipment purchase price, including sales tax, was paid for by issuing a 120 day 5% Note Payable. Based on industry standards,...
Aggie Company purchased a piece of equipment with an invoice price of $80,000 on March 1, 2019. Other information concerning the purchase include the following: (1) Shipping costs totaling $1,000 (2) Sales tax totaling $6,400 (3) Terms of the purchased were 3/20; net 60. The invoice was paid on March 15, 2019. (4) A state agency required that an anti-pollution device be installed on the equipment at a cost of $4,000. (5) During installation, the equipment was damaged and repair...
Question 1: P5-3A Presented here are selected transactions for Norlan Inc. during September of the current year. Norlan uses a perpetual inventory system. Sept. 2 Purchased equipment on account for $65,000, terms n/30, FOB destination. 3 Freight charges of $950 were paid by the appropriate party on the September 2 purchase of equipment. 4 Purchased supplies for $4,000 cash. 6 Purchased inventory on account from Hillary Corp. at a cost of $65,000, terms 1/15, n/30, FOB shipping point. 7 Freight charges...
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
Oaktree Company purchased new equipment and made the following expenditures: Purchase Price $45,000 Sales Tax $2,200 Freigh Charges for shipment of machine $700 Insurance on machine for 1st yr $900 Installation of machine $1,000 The Equipment, including sales tax, was purchase 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 aboce expenditures.
Simble Company purchased new equipment and made the following expenditures: Purchase price $60,000 Sales tax 2,600 Freight charge for shipment of equipment 880 Insurance on the equipment for the first year 1,100 Installation of equipment 1,300 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.
Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment $55,000 3,200 800 1,000 2,000 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. Journal entry worksheet Record the purchase of equipment. Note: Enter debits before credits. Transaction General Journal Debi Debit Credit...
Question 2: P5-3A Presented here are selected transactions for Norlan Inc. during September of the current year. Norlan uses a perpetual inventory system. Sept. 2 Purchased equipment on account for $65,000, terms n/30, FOB destination. 3 Freight charges of $950 were paid by the appropriate party on the September 2 purchase of equipment. 4 Purchased supplies for $4,000 cash. 6 Purchased inventory on account from Hillary Corp. at a cost of $65,000, terms 1/15, n/30, FOB shipping point. 7 Freight charges...
Equipment was purchased for $73,200 plus $1,308 in freight charges. Installation costs were $4,960 and sales tax totaled $4,482. The increase in net working capital was $3,176. What is this asset's depreciable basis?
Equipment was purchased for $71,801 plus $1,538 in freight charges. Installation costs were $4,766 and sales tax totaled $4,817. The increase in net working capital was $2,215. What is this asset's depreciable basis?