HomeworkLib
Question

1:00 1:00 Knowledge Check 01 Silver Company purchased a machine for use in the business. The purchase price was $55,000 and the related sales tax totaled $500 Sliver paid $1,000 to have the machine delivered to its factory and $2.000 to have it assembled. Over the five-year life of the machine. maintenance cost of $800 will be incurred annually What is the capitalized cost of this asset? PreN 456 10 of 10 Next>
Knowledge Check 01 Manning Company purchased a factory for $120,000 The factory included land, a building, and equipment. The land contributes 40.8%, the building contributes 49.6%, and the equipment contributes 9.6% of the factorys value. How much of the cost should be assigned to the building? Cost assigned to the bulding
Knowledge Check 01 Remington Company purchased office equipment for use in the business with an invoice price of $28,00 The company paid $1 to have the equipment delvered and another $500 to have it installed. The company paid cash for the transportation and installation costs and signed a note for the invoice price of the new equipment Prepare the appropriate journal entry for the expenditures relating to this equipment. (If no entry is required for a transaction/event select No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the purchase of equipment at $30,000, of which $2,000 paid in cash and balance as notes payable. Note: Enter debits before credis Transaction
Knowledge Check O1 The acquisition cost of a delivery truck was $45.000 and the accumulated depreciation recorded on that truck to-date equals $20,000. What is the book value of the truck? < Prev 9-10 of 10 İİİ Next >
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Capitalization cost of Asset: All costs incurred to make asset is available to use shall be capitalized. Purchase Price Sales tax transportation charges Installation charges Capitalization Cost of Asset $55,000.00 $500.00 $1,000.00 $2,000.00 S58,500.00 Cost Assigned to Building: Proportionate Value of Price Shall be assigned to each component of asset. Total Value Contribution of Building Cost Assigned to building $120,000.00 49.60% 496% x $120000 $59,520.00Journal Entry to record Purchase of Asset Journal Entries Date Account Title and Explaination Post. Ref. Debit Credit Equipment S30,000.00 Notes Payable Cash S28,000.00 S2,000.00 To record piurchase of Equipment) Carrying Value/ Book Value: Book Value Acquisition Cost - Accumulated Depreciation S45,000 - $20,000 -$25,000.00

0 0
Add a comment
Know the answer?
Add Answer to:
1:00 1:00 Knowledge Check 01 Silver Company purchased a machine for use in the business. The...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Knowledge Check 01 On January 1 Truesdale, Inc., purchased a piece of machinery for use in...

    Knowledge Check 01 On January 1 Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the stralght-line method, the amount of depreciation that should be recorded during year 1, is approximately Knowledge Check 01 On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of...

  • Knowledge Check 01 On January 1 Year 1. Luring Company purchased equipment and agreed to make...

    Knowledge Check 01 On January 1 Year 1. Luring Company purchased equipment and agreed to make a $10.000 cash payment on December 31, Year 5. At an interest rate of 12%, how much will the company need to deposit today to make the required cash payment on December 31, Year 5? Use Table E1. (Round your answer to 2 decimal places.) Present value S 5674 30 Knowledge Check 01 On January 1, Year 1. Barrett, Inc. purchased equipment and signed...

  • Knowledge Check 01 A company is in its first month of operations. The company pays total...

    Knowledge Check 01 A company is in its first month of operations. The company pays total salaries to its employees of $600 per day. For the first four weeks of January (28 days), the company paid its employees $16,800 cash. For the final three days in January, employees earn $1,800 in additional salaries that will not be paid until February 4. What adjusting entry would be made at the end of January? Post the adjusting entry for the scenario provided....

  • Knowledge Check 01 Prior to June 1, Sandler Company had no treasury stock transactions. Then, on...

    Knowledge Check 01 Prior to June 1, Sandler Company had no treasury stock transactions. Then, on June 1, the company paid $5,000 to purchase 100 shares of its common stock on the open market. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debitor credit columns View transaction list Journal entry worksheet Prior to June 1, Sandler Company had no treasury stock transactions. Then, on June 1, the...

  • Knowledge Check 01 Rhode Inc. began business in Year 1 Inventory reported in the Year 3...

    Knowledge Check 01 Rhode Inc. began business in Year 1 Inventory reported in the Year 3 year-end balance sheet, determined using the average cost method, was $170,000. In Year 4, the company decided to change its inventory method to FIFO. If the company had used the FIFO method in Year 3. ending inventory would have been $220.000. Prepare the appropriate journal entry to record this change. (If no entry is required for a transaction/event, select "No journal entry required" in...

  • Knowledge Check 01 A company is in its first month of operations. Supplies worth $4,000 were...

    Knowledge Check 01 A company is in its first month of operations. Supplies worth $4,000 were purchased on January 5. At the end of the month supplies worth $3,000 were in hand. What adjusting entry would be made at the end of January? Post the adjusting entry for the scenario provided. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. record the consumption of supplies during the month if supplies are...

  • Required information Knowledge Check 01 On January 5, Barnaby, Inc., purchased a patent costing $100,000 with...

    Required information Knowledge Check 01 On January 5, Barnaby, Inc., purchased a patent costing $100,000 with a useful life of 20 years. The company records its adjustin entries at the end of each year on December 31 Complete the necessary adjusting entry by selecting the account names from the drop-down menus and entering the dollar amou in the debitor credit columns View transaction list Journal entry worksheet < On January 5, Bamaby, Inc., purchased a patent costing $100,000 with a...

  • Required information kon/lend images Knowledge Check 01 On January 2, Dixie, Inc. pays a salvage company...

    Required information kon/lend images Knowledge Check 01 On January 2, Dixie, Inc. pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000 Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit of credit columns View transaction list Journal entry worksheet 1 > On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with...

  • Knowledge Check 01 On April 7, Carlton Company purchases supplies for $600 cash. Provide the journal...

    Knowledge Check 01 On April 7, Carlton Company purchases supplies for $600 cash. Provide the journal entry for this transaction. View transaction list Journal entry worksheet On April 7, Carlton Company purchases supplies for $600 cash. Note: Enter debits before credits. Date Account Title Debit Credit April 07 Cash Accounts Payable Cash Inventory Record View general Journal Supplies

  • Knowledge Check 01 Last year, Mountain Top, Inc., purchased a coal mine at a cost of...

    Knowledge Check 01 Last year, Mountain Top, Inc., purchased a coal mine at a cost of $900,000. The salvage value has been estimated at $100,000. The coal mine has an estimated 200,000 tons of available coal. A total of 70,000 tons were mined and sold during the current year Complete the necessary adjusting journal entry to record depletion expense for the current year by selecting the account names from the drop-down menus and entering the dollar amounts in the debit...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT