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, the equipment is expected to have a useful life of 8 years, at which time it will have an estimated worth of $4,291. The equipment will be depreciated using the Straight Line method.
What is the total Capitalized Cost of the equipment?
This solution includes capitalization of cost of equipment.
QUESTION 8 On June 28, Carpenter Corporation purchased equipment with a purchase price of $36,626 plus...
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...
On June 7, Carpenter Merchants Company purchased merchandise from Cecil Company as follows - Purchase Price: $7500, Sales Tax: 7%, Sales Terms: 2/10, n/30. On June 7, Carpenter Merchants Company will (blank) Merchandise Inventory in the amount of . (blank)On June 9, Carpenter Merchants Company returned merchandise from the June 7 sale and recorded a debit memorandum as follows - Debit Memo: No. 1, Purchase Price of returned merchandise: $600. On June 11, Carpenter Merchants Company paid Cecil Company in...
Which of the following equipment related costs is not capitalized on a balance sheet? Equipment installation costs. Equipment maintenance costs. The equipment's purchase price plus sales tax. Transportation costs associated with the equipment purchase.
QUESTION 9 On August 1, Warren Company placed into service equipment with a capitalized cost of $40,809. The equipment was paid for by issuing a 90 day 6% Note Payable. Based on industry standards, the equipment is expected to have a useful life of 7 years, at which time it will have an estimated worth of $3,921. The equipment will be depreciated using the Straight Line method. Based on these transactions alone, what is the Depreciation Expense on the equipment...
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?
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...
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...
Equipment was purchased for $94,029 plus $1,865 in freight charges. Installation costs were $4,431 and sales tax totaled $4,188. The increase in net working capital was $2,822. What is this asset's depreciable basis? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEAREST DOLLAR (e.g. 1250).
Equipment was purchased for $94,029 plus $1,865 in freight charges. Installation costs were $4,431 and sales tax totaled $4,188. The increase in net working capital was $2,822. What is this asset's depreciable basis? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEAREST DOLLAR (e.g. 1250).