Kegler Bowling buys scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $19,950. Additional costs are $3.990 for delivery and $13,690 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,860. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred

Kegler Bowling buys scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $19,950. Additional costs are $3.990 for delivery and $13,690 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,860. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kegler Bowling buys scorekeeping equipment with an invoice cost of $180,000. The electrical work required for the installation costs $18,000. Additional costs are $3,600 for delivery and $12,900 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,760. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Invoice cost Electrical work required for installation. Delivery costs Sales tax Repair costs Total recorded cost Amount $ 180,000 18,000 3,600 12,900 1,760 Included or Excluded Account
Kegler Bowling buys scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,850. What is the total recorded cost of the scorekeeping equipment?
Kegler Bowling buys scorekeeping equipment with an invoice cost of $175,000. The electrical work required for the installation costs $18,200. Additional costs are $3,640 for delivery and $12,600 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,700. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Included or Costs Amount Acco Excluded Invoice cost $ 175,000 Electrical work required for installation 18,200 Delivery costs 3,640 Sales tax 12,600 Repair costs 1,700 Total recorded cost
Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $155,00O. The electrical work required for the installation costs $16,275. Additional costs are $3,255 for delivery and $11,170 for sales tax. During the installation, a component of the equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $1,505. What is the total recorded cost of the automatic scorekeeping equipment? Included/ Excluded Total cost DR Machinery DR Expense Invoice cost 155,000 Electrical work required for installation 16,275 Delivery costs 3,255 Sales tax 11,170 Repair costs 1,505 Total 2$ 187,205
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