Current Attempt in ProgressIvanhoe Co, both purchases and constructs various equipment it uses in its operations. The following items for two different types ofequipment were recorded in random order during the calendar year 2020.PurchaseCash paid for equipment, including sales tax of $6.700$140,700Freight and insurance cost while in transit2,680Cost of moving equlpment into place at factory4,154Wage cost for technicians to test equipment5.360Insurance premiuam paid during first year of operation on this equipment2010Special plumbing fatures required for new equipinent10,720Repair cost incurred in hrst year of operations related to this equipment1,742Construction ConstructionMaterial and purchased parts (gross cost $268,000; failed to take 2% cash discount)$268,000Imputed interest on funds used during construction (stock financing)18,760Labor costs254,600Allocated overhead costs (fixed-$26.800; varlable-$40,200)67,000Proft on self-construction40.200Cost of installing equipment5,896Compute the total cost to be capitalized for each of these two pleces of equipment.Purchase equipment$4Construction equipment

Capitalized cost is the cost incurred in purchasing or building fixed assets . In purchasing fixed…

Attempt in Progress Ivanhoe Co. both purchases and constructs various equipment it unes in its operations. The following items for two different types of equipment were recorded in random order curing the calendar year 2020 Purchase Cash paid for equipment, including sales tax of $6.700 $140,700 Freight and insurance cost while in transit 2,600 Cost of moving equipment into place at factory 4.154 Wage cost for technicians to test equipment 5.360 Isurance premium paid during frst year of operation on this equipment 2010 Special plumbing hatures requiret for new equipmernt Repair cost incurred in hrst year of operations retated to this equipment 10,720 1742 Construction

Attempt in Progress Ivanhoe Co. both purchases and constructs various equipment it unes in its operations. The following items for two different types of equipment were recorded in random order curing the calendar year 2020 Purchase Cash paid for equipment, including sales tax of $6.700 $140,700 Freight and insurance cost while in transit 2,600 Cost of moving equipment into place at factory 4.154 Wage cost for technicians to test equipment 5.360 Isurance premium paid during frst year of operation on this equipment 2010 Special plumbing hatures requiret for new equipmernt Repair cost incurred in hrst year of operations retated to this equipment 10,720 1742 Construction

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...

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Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
weet Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $6,100 $128,100 Freight and insurance cost while in transit 2,440 Cost of moving equipment into place at factory 3,782 Wage cost for technicians to test equipment 4,880 Insurance premium paid during first year of operation on this equipment 1,830 Special plumbing fixtures required for new equipment 9,760 Repair cost incurred in first year of operations related to this equipment 1,586 Construction Material and purchased parts (gross cost $244,000; failed to take 2% cash discount) $244,000 Imputed interest on funds used during construction (stock financing) 17,080 Labor costs 231,800 Allocated overhead costs (fixed-$24,400; variable-$36,600)…
Dane ASA bothpurchases and constructs various equipment it uses in its operations. The followingitems for two different types of equipment were recorded in random order during thecalendar year 2019. PurchaseCash paid for equipment, including sales tax of €5,000 €105,000Freight and insurance cost while in transit 2,000Cost of moving equipment into place at factory 3,100Wage cost for technicians to test equipment 6,000Insurance premium paid during first year of operation on this equipment 1,500Special plumbing fixtures required for new equipment 8,000Repair cost incurred in first year of operations related to this equipment 1,300ConstructionMaterial and purchased parts (gross cost €200,000; failed to take 1% cashdiscount)€200,000Imputed interest on funds used during construction (share financing) 14,000Labor costs 190,000Allocated overhead costs (fixed—€20,000; variable—€30,000) 50,000Profit on self-construction 30,000Cost of installing equipment 4,400InstructionsCompute the total cost…
Pina Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase $117,600 Cash paid for equipment, including sales tax of $5,600 2,240 Freight and insurance cost while in transit 3,472 Cost of moving equipment into place at factory 4,480 Wage cost for technicians to test equipment 1,680 Insurance premium paid during first year of operation on this equipment 8,960 Special plumbing fixtures required for new equipment 1,456 Repair cost incurred in first year of operations related to this equipment Construction Material and purchased parts (gross cost $224,000; failed to take 2% cash discount) $224,000 Imputed interest on funds used during construction (stock financing) 15.680 Labor costs 212,800 28 w MacBook Air 20. F2 F3 F5 F8 F9 F10 F1 2$ & * 4 5 7 9. E T Y U O P { F G H K CV B N M .. # 3
Bridgeport Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $7,400 $155,400 Freight and insurance cost while in transit 2,960 Cost of moving equipment into place at factory 4,588 Wage cost for technicians to test equipment 5,920 Insurance premium paid during first year of operation on this equipment 2,220 Special plumbing fixtures required for new equipment 11,840 Repair cost incurred in first year of operations related to this equipment 1,924 Construction Material and purchased parts (gross cost $296,000; failed to take 2% cash discount) $296,000 Imputed interest on funds used during construction (stock financing) 20,720 Labor costs 281,200 Allocated overhead costs (fixed-$29,600; variable-$44,400)…
Current Attempt in Progress Waterway Company purchased equipment on January 1 at a list price of $121500, with credit terms 2/10, n/30. Payment was made within the discount period and Waterway was given a $2430 cash discount. Waterway paid $6400 sales tax on the equipment, and paid installation charges of $1760. Prior to installation, Waterway paid $3600 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? O $133260 O $127230 O $130830 O $125470
On 1 May 2020, Ron Trading purchased a new machine. The following paymentsrelate to the machine.List price $21,500Purchase discount $2,000Transportation cost $300Repair of damage parts incurred in transporting the machine $1,000Fees paid to test the machine before use $500Fees paid to the installer to install the machine $800Machine operator’s salary for the first month of operation $3,000Maintenance costs for the first month of operation $300(i) Identify and compute the cost of the machine to be recognised. Explainyour reasoning.(ii) Journalise the transactions. Assume the above payments are paid in cash.
Worf Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $5,000 $105,000 Freight and insurance cost while in transit 2,000 Cost of moving equipment into place at factory 3,100 Wage cost for technicians to test equipment 4,000 Insurance premium paid during first year of operation on this equipment 1,500 Special plumbing fixtures required for new equipment 8,000 Repair cost incurred in first year of operations related to this equipment 1,300 Construction Material and purchased parts (gross cost $200,000; failed to take 2% cash discount) $200,000 Imputed interest on funds used during construction (stock financing) 14,000 Labor costs 190,000 Allocated overhead costs (fixed—$20,000; variable—$30,000) 50,000 Profit on self-construction 30,000…
Save & Exit Check m Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $85,000, Manufacturers Southern's fiscal year ends December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provlded.) Related Informationt Lease term 2 years (8 quarterly periods) $15,000 at the beginning of each period Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate 2 years $112,080 88 Required: 1. Show how International Machines determined the $15,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how International Machines determined the $15,000…
Chicago Heights company has 2 year contract to construct a warehouse. The contract value is 2949 and the estimated total cost is 1156. During the next 2 years, the costs are incurred as follows and the project is completed by the end of second year. Contract data Year for the year 2019 for the year 2020 Cost incurred 867$ 851$ Required Make the recognition of revenue, expenses and profits for 2020. Type in the profit value without using the currency sign and separators.
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 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 (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 < 1 $50,000 2,700 750 958 1,500 2 Record the purchase of equipment.
Details regarding Leroux Steel's purchases of plant and equipment items during 2020 follow: Plant and Equipment Item Machine A Machine B Estimated Sales Value at End of Estimated Useful Life $ 0 Machine C Date of Purchase a. Jan. 1 b. Apr. 1 c. Nov. 1 Cost $107,000 86,000 43,500 Estimated Useful life 5 years 4 years 2 years 4,400 3,900 Assume Leroux Steel uses the straight-line method to depreciate its assets. Required: Prepare the annual adjusting entry at December 31, 2020, Leroux's year-end, for each plant and equipment item.