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 cost.
2) Using the double declining balance method: a)calculate and prepare the journal entry for depreciation expense for the second year.
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Johnson Company purchased factory equipment with an invoice
price of $150,000. Other costs incurred were freight...
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.
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...
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...
4. Watmore Ltd. purchased, for cash, factory equipment with an invoice price of $80,000. Other costs...
4. Watmore Ltd. purchased, for cash, factory equipment with an invoice price of $80,000. Other costs incurred were freight costs, $1,600; installation, wiring and foundation, $13,500; material and labour costs in testing equipment, $500; oil lubricants and supplies to be used while operating the equipment, $750; fire insurance policy covering equipment, $1,400. The equipment is estimated to have a $10,000 residual value at the end of its 8-year useful service life. (8 marks) Instructions (a) Calculate the cost of the...
Is my Acquisition cost of the equipment right? and idk to fund the dpereciable costs at the end expressed as a %. Bl...
Is my Acquisition cost of the equipment right? and idk to fund
the dpereciable costs at the end expressed as a %.
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...
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
equipment was purchased for $86,300 on January 1, 2016. Freight charges amounted yo $3,800 and there...
equipment was purchased for $86,300 on January 1, 2016.
Freight charges amounted yo $3,800 and there was a cost of $12,000
for building a foundation and installing the equipment. It is
estimated that the equipment will have $22,000 salvage value at the
end of its 5 year useful life. What is the amount of accumulated
depreciation at December 31, 2017, if the straight-line method of
depreciation is used?
Multiple Choice Question 205 A company purchased factory equipment for 1400000. It...
Question 5 Rodgers Company purchased equipment and these costs were incurred: Cash price Sales taxes Insurance...
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.
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.
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.
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...
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...
Is my Acquisition cost of the equipment right? and idk to fund
the dpereciable costs at the end expressed as a %.
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...
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
equipment was purchased for $86,300 on January 1, 2016.
Freight charges amounted yo $3,800 and there was a cost of $12,000
for building a foundation and installing the equipment. It is
estimated that the equipment will have $22,000 salvage value at the
end of its 5 year useful life. What is the amount of accumulated
depreciation at December 31, 2017, if the straight-line method of
depreciation is used?
Multiple Choice Question 205 A company purchased factory equipment for 1400000. It...
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.
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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