Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10, n/30....
- Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10, n/30. Katen pays within the discount period and incurs freight-in costs of $1,500 and installation and testing costs of $6,000. Katen insures the machine for the first year of its use for $2,800.
Required:
Prepare the journal entry to record the acquisition of the machine.
Homework Answers
Journal Entries:-
1) Machine ..........Dr $200,000
Freight ...........Dr $1,500
Testing Cost ............Dr $6,000
To Discount ($2000,000x2%) $40,000
To Bank $1,967,350
( Being Machine is purchased all freight and testing Cost should be capitalised)
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Katen Company purchases a machine with a purchase price of
$200,000 on terms of 2/10, n/30....
a. Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10,...
a. Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10, n/30. Katen pays within the discount period and incurs freight-in costs of $1,500 and installation and testing costs of $6,000. Katen insures the machine for the first year of its use for $2,800. Required: Prepare the journal entry to record the acquisition of the machine.
Rizio Co. purchases a machine for $12,800, terms 2/10, n/60, FOB shipping point. Rizio paid within...
Rizio Co. purchases a machine for $12,800, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $256 discount. Transportation costs of $289 were paid by Rizio. The machine required mounting and power connections costing $885. Another $417 is paid to assemble the machine and $40 of materials are used to get it into operation During installation, the machine was damaged and $370 worth of repairs were made. Complete the below table to calculate the...
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Exercise 10-1 Cost of plant assets LO C1 Rizio Co. purchases a machine for $12,200, terms 1/10, n/60, FOB shipping point. The seller prepaid the $276 freight charges, adding the amount to the invoice and bringing its total to $12,476. The machine requires special steel mounting and power connections costing $843. Another $398 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting. $290 in damages occurred. Materials costing $40 are...
Dalton Company purchased a machine for $11,000 terms 2/10, 1/60, FOB shipping point. The seller prepaid...
Dalton Company purchased a machine for $11,000 terms 2/10, 1/60, FOB shipping point. The seller prepaid the freight charges, $280, and sent a second invoice for the freight. Dalton took advantage of the discount on the first Invoice, but the discount was not available on the freight invoice. The machine required a special steel mounting and power connections costing $815, and another $405 was paid to assemble the machine and get it into operation. In moving the machine onto its...
Dalton Company purchased a machine for $12,000, terms 1/10, n/60, FOB shipping point. The seller prepaid...
Dalton Company purchased a machine for $12,000, terms 1/10, n/60, FOB shipping point. The seller prepaid the freight charges, $290, and sent a second invoice for the freight. Dalton took advantage of the discount on the first invoice, but the discount was not available on the freight invoice. The machine required a special steel mounting and power connections costing $825, and another $420 was paid to assemble the machine and get it into operation. In moving the machine onto its...
Rizio Co. purchases a machine for $10,900, terms 2/10, n/60, FOB shipping point. Rizio paid within...
Rizio Co. purchases a machine for $10,900, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $218 discount. Transportation costs of $246 were paid by Rizio. The machine required mounting and power connections costing $754. Another $355 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $225 worth of repairs were made. Complete the below table to calculate the...
Rizio Co. purchases a machine for $14,900, terms 2/10, n/60, FOB shipping point. Rizio paid within...
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Rizio Co. purchases a machine for $11,600, terms 2/10,n/60, FOB shipping point. Rizio paid within the...
Rizio Co. purchases a machine for $11,600, terms 2/10,n/60, FOB shipping point. Rizio paid within the discount period and took the $232 discount. Transportation costs of $262 were paid by Rizio. The machine required mounting and power connections costing $802. Another $378 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $370 worth of repairs were made. Complete the below table to calculate the cost...
Rizio Co purchases a machine for $12,500, terms 2/10,n/60, FOB shipping point. Rizio paid within the...
Rizio Co purchases a machine for $12,500, terms 2/10,n/60, FOB shipping point. Rizio paid within the discount period and took the $250 discount. Transportation costs of $360 were paid by Rizio. The machine required mounting and power connections costing $895 Another $475 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $180 worth of repairs were made. Complete the below table to calculate the cost...
Rizio Co. purchases a machine for $12,800, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $256 discount. Transportation costs of $289 were paid by Rizio. The machine required mounting and power connections costing $885. Another $417 is paid to assemble the machine and $40 of materials are used to get it into operation During installation, the machine was damaged and $370 worth of repairs were made. Complete the below table to calculate the...
Exercise 10-1 Cost of plant assets LO C1 Rizio Co. purchases a machine for $12,200, terms 1/10, n/60, FOB shipping point. The seller prepaid the $276 freight charges, adding the amount to the invoice and bringing its total to $12,476. The machine requires special steel mounting and power connections costing $843. Another $398 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting. $290 in damages occurred. Materials costing $40 are...
Dalton Company purchased a machine for $11,000 terms 2/10, 1/60, FOB shipping point. The seller prepaid the freight charges, $280, and sent a second invoice for the freight. Dalton took advantage of the discount on the first Invoice, but the discount was not available on the freight invoice. The machine required a special steel mounting and power connections costing $815, and another $405 was paid to assemble the machine and get it into operation. In moving the machine onto its...
Dalton Company purchased a machine for $12,000, terms 1/10, n/60, FOB shipping point. The seller prepaid the freight charges, $290, and sent a second invoice for the freight. Dalton took advantage of the discount on the first invoice, but the discount was not available on the freight invoice. The machine required a special steel mounting and power connections costing $825, and another $420 was paid to assemble the machine and get it into operation. In moving the machine onto its...
Rizio Co. purchases a machine for $10,900, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $218 discount. Transportation costs of $246 were paid by Rizio. The machine required mounting and power connections costing $754. Another $355 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $225 worth of repairs were made. Complete the below table to calculate the...
Rizio Co. purchases a machine for $14,900, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $298 discount. Transportation costs of $337 were paid by Rizio. The machine required mounting and power connections costing $1,030. Another $486 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $375 worth of repairs were made. Complete the below table to calculate the...
Rizio Co. purchases a machine for $11,600, terms 2/10,n/60, FOB shipping point. Rizio paid within the discount period and took the $232 discount. Transportation costs of $262 were paid by Rizio. The machine required mounting and power connections costing $802. Another $378 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $370 worth of repairs were made. Complete the below table to calculate the cost...
Rizio Co purchases a machine for $12,500, terms 2/10,n/60, FOB shipping point. Rizio paid within the discount period and took the $250 discount. Transportation costs of $360 were paid by Rizio. The machine required mounting and power connections costing $895 Another $475 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $180 worth of repairs were made. Complete the below table to calculate the cost...
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