Trinkle Company made several purchases of long-term assets during the year. The details of each purchaseare presented here.New Office Equipment1. List price: $42,600; terms: 2/10, n/30; paid within the discount period.2. Transportation-in: $880.3. Installation: $400.4. Cost to repair damage during unloading: $630.5. Routine maintenance cost after eight months: $150.Basket Purchase of Copier, Computer, and Scanner for $52,500 with Fair Market Values1. Copier, $23,421.2. Computer, $12,027.3. Scanner, $27,852.Land for New Warehouse with an Old Building Torn Down1. Purchase price, $83,800.2. Demolition of building, $4,760.3. Lumber sold from old building, $1,780.4. Grading in preparation for new building, $7,900.5. Construction of new building, $279,000. RequiredIn each of these cases, determine the amount of cost to be capitalized in the asset accounts.Office equipmentBasket purchase:AssetCopierComputerScannerTotal cost to be capitalizedLand and building:Cost of landConstruction costsTotal cost to be capitalizedAllocated Costs$$Total00

Cost allocation refers to the process which is used by the company to allocate the cost of product…

Answered: Required In each of these cases,…

Business

Accounting

Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: QUESTION 4 Below is the trial balance as at 31 December 2021 of K.S.Raswoth runs a stationery…

A: Financial statement analysis refers to the process of analyzing the financial statements of a…

Q: Journalize the following transactions using the allowance method of accounting for uncollectible…

A: Under Allowance Method, a reserve is created for the uncollectable receivables, from the Profit…

Q: Which of the following is true? a. A twenty year fixed rate mortgage has a lower interest rate than…

A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the…

A: Net Present Value: According to Knight, "the present value of the cash flows at the needed rate of…

Q: sted a prototype electronic product and are about to start your new business. You have purchase…

A: Inventories refer to the stock piled up in the company's warehouses for the purpose of selling them…

Q: The following data is provided for Garcon Company and Pepper Company for the year ended December 31.…

A: The prime cost is the one which includes all the direct costs includes in the making of a product.…

Q: Use the following information to prepare a multistep income statement and a balance sheet for…

A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…

Q: On January 1, 2022, Skysong, Inc. had $1,190,000 of common stock outstanding that was issued at par…

A: Stock dividend is the issue of dividend in the form of shares. In this type of dividend, the entity…

Q: (a) Calculate the cost of goods sold and ending inventory for the month using specific…

A: Methods of Valuation of Inventory 1. Weighted Average Cost: Under this method, an average cost of…

Q: What is the importance of annual reports?

A: Introduction: An annual report is a document that public corporations are required to present to…

Q: In the 31 Dec 2017 annual report of Sun Ltd, the equipment A was reported as follows: Equipment A…

A: Depreciation Method Depreciation method which are used for the business to know the actual value…

Q: Mullins Corp., a start‑up company, uses the accrual accounting method. In Year 1, Mullins provided…

A: Accrual method of accounting is, in which the expenses and incomes are recorded on the basis of as…

Q: E6-21 (Algo) Recording, Reporting, and Evaluating a Bad Debt Estimate Using the Percentage of Credit…

A: Given, 1) Bad debts of $1,800 to be accounted for. 2) provision for Doubtful debts to be created @3%…

Q: Compute depreciation expense for 2022 under the straight‑line depreciation method. (Round your…

A: It is possible that a Business Entity can purchase the Asset during its Financial Year. In that…

Q: On July 1, 2022, Paul Brite started a TV repair business. JULY 1 He invested 50 000 in cash to start…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Suppose that we can describe the world using two states and that two assets are available, asset K…

A: Arbitrage: The arbitrage process reduces risk by purchasing and selling different securities in a…

Q: Which of the following statements is true? Oa. A one-time election is available to taxpayers 55…

A: A one-time election is available to taxpayers 55 years of age or older which allows them to sell…

Q: Serbanika Limited has issued share capital of 2 million common shares, par value $1.00. The board of…

A: There are various means in which the company can raise the additional finance required such as…

Q: Selected accounts and amounts appear below. Inventory Cost of Goods Sold $46,193 501,246 Journalize…

A: Closing entries are reported in the books to close the revenue and expense accounts. These are the…

Q: 3DD Corporation engaged your service to audit its account. In your examination of cash, you find…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Commercial Papers are issued by Commercial Banks Government Corporate Sector Mutual Funds

A: Commercial paper is a short term instrument of debt, which is by the companies to raise funds…

Q: QUESTION 3- Cash Budgets Jamieson Ltd is preparing to set up business on 1/7/2022 and has made…

A: Budgeting - Budget is the document prepare by the company to estimate future Income and expense on…

Q: Inventory records for Marvin Company revealed the following: Date Transaction March 1 Beginning…

A: Introduction: Ending inventory is the cost of items on hand just at end of a reporting period. For a…

Q: Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25…

A: Weighted Average Cost Method - Under this Method company sums all the inventory purchase with the…

Q: Question 3 Happy Berhad owns 40% interest in the equity capital of Merry Berhad. During the year…

A: In the context of the given question, we are required to show the consolidated adjustments.…

Q: Which of the following statements are true in regards to going concern following IPSAS 1…

A: Going Concern: A going concern is a word used in accounting to describe a corporation that has the…

Q: would like a second opinion on this below The comparative balance sheet and income statement of PAJ…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Jones expects an immediate investment of $91,461.30 to return $21,000 annually for six years, with…

Q: Issued $14,000 of QCI stock for cash. Incurred $650 of utilities costs this month and will pay them…

A: Journal entries ais a process of recording and classifying business transactions into books of…

Q: On May 1, 2022, Blossom Corp. issued $820,000, 12%, 5-year bonds at face value. The bonds were dated…

A: Interest expense is the amount of expense incurred by an entity. It is paid to the bond holder in…

Q: Heiner Company began business on July 1, 2022 and made the following four inventory purchases in…

A: The First in first out method refers to the assumption that the goods which are received first are…

Q: Which of the following statements is true? Oa. A one-time election is available to taxpayers 55…

A: Income tax levied by government on the amount earned by an individual and corporate profits. It paid…

Q: Sugar, Incorporated sells $938,600 of goods during the year that have a cost of $797,200. Inventory…

A: Inventory turnover ratio is an efficiency ratio that measure how fast an entity is able to sell its…

Q: During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $24,000. On the…

A: The structure of the balance sheet is highlighted by an accounting equation, The double-entry…

Q: O None of these would be considered a breach of the qualitative characteristic of faithful…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: c) The followings are the cash book and the bank statement of Alison Baker for the month of November…

A: Bank reconciliation statement is a statement of reconciliation bank balance as per cash book with…

Q: Taman Astakona Sdn. Bhd. has prepared department overhead budgets for budgeted- volume levels before…

A: Direct Method: Under this method, overheads are directly allocated to operating departments without…

Q: gross income?

A: Gross income refers to the amount that a person or institution earned from the business operations…

Q: Part 3: Early Extinguishment of Debt On January 1, 2021, Free Design Industries had $700,000 of 12%…

A: When comparing the values of carrying value of the bond and Bond face value there is interconnection…

Q: (Year-end adjusting journal entries) Prepare budgetary and proprietary journal entries to record the…

A: Journal entry When any transaction is made a journal entry is passed to record the transactions.…

Q: FINANCIAL TRANSACTION WORKSHEET TRANSACTION A. Jasmin invested 100 000 cash to start a Travel and…

A: This is the basic accounting term and equation that the assets of the company is always equal to the…

Q: On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of…

A: Under aging of accounts receivable method, required balance of Allowance for Doubtful Accounts is…

Q: ne independence and objectivity as it relates to internal audit functi

A: The internal audit function refers to the process of asses the internal functions of a company as…

Q: Mullins Corp., a start‑up company, uses the accrual accounting method. In Year 1, Mullins provided…

A: When a good or service is provided to a consumer with the expectation that money will be paid later,…

Q: For each of the following situations involving single amounts, solve for the unknown. Assume that…

A: Future value is = present value (1+r) n Present value is = future value(1/1+r)n n= time r= rate

Q: QUESTION 2 The following trial balance of Anderson Pryion has been prepared by his accountant. After…

A: Income statement: It shows the difference between the income earned and expenses incurred during a…

Q: Can you please explain the PV that is used to calculate the present value of tax savings. That is:…

A: Tax is calculated and paid to government after, deducting depreciation. Depreciation is a non cash…

Q: e statement of realization and liquidation of ABC Corp are as follows: Assets to be realized…

A: Realisation / Liquidation Statement: When the business firm's activities comes to an end or the…

Q: An asset costs $420,000 and will be depreciated in a straight-line manner over its 3-year life. It…

A: Net leasing advantage is the total savings a person would earn when they chose to lease an asset as…

Q: Materials costs of P200,000 and conversion costs of P214,200 were charged to a processing department…

A: Process Costing : Process costing is very important method between the various methods of…

Question

Trinkle Company made several purchases of long-term assets during the year. The details of each purchase
are presented here.
New Office Equipment
1. List price: $42,600; terms: 2/10, n/30; paid within the discount period.
2. Transportation-in: $880.
3. Installation: $400.
4. Cost to repair damage during unloading: $630.
5. Routine maintenance cost after eight months: $150.
Basket Purchase of Copier, Computer, and Scanner for $52,500 with Fair Market Values
1. Copier, $23,421.
2. Computer, $12,027.
3. Scanner, $27,852.
Land for New Warehouse with an Old Building Torn Down
1. Purchase price, $83,800.
2. Demolition of building, $4,760.
3. Lumber sold from old building, $1,780.
4. Grading in preparation for new building, $7,900.
5. Construction of new building, $279,000.

Required
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
Office equipment
Basket purchase:
Asset
Copier
Computer
Scanner
Total cost to be capitalized
Land and building:
Cost of land
Construction costs
Total cost to be capitalized
Allocated Costs
$
$
Total
0
0

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $35,300; terms: 2/10 n/30; paid within discount period. Transportation-in: $790. Installation: $570. Cost to repair damage during unloading: $660. Routine maintenance cost after eight months: $240. Basket Purchase of Copier, Computer, and Scanner for $46,400 with Fair Market Values Copier, $23,478. Computer, $8,944. Scanner, $23,478. Land for New Warehouse with an Old Building Torn Down Purchase price, $77,500. Demolition of building, $4,540. Lumber sold from old building, $1,570. Grading in preparation for new building, $9,600. Construction of new building, $235,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
B. D E G H. J K 3. Create the fixed asset supporting schedule for the following purchases: Two fixed assets are purchased during the year: Computer server on 5/4/2014 for $2,214.55 Office furniture on 11/17/2014 for $1,234.54 MACRS 150% is going to be the depreciation method used and depreciation adjusting entries are made at the end of each month. (check figure: total depreciation expense = 107.63) What will be the depreciation general journal adjusting entry on 12/31/2014?
New Office Equipment List price: $60,000; terms: 2/10, n/30; paid within the discount period. Transportation-in: $1,500. Installation: $2,500. Cost to repair damage during unloading: $650. Routine maintenance cost after eight months: $350. determine the amount of cost to be capitalized in the asset account office equipment: ?
White mountain supply company purchases warehouse shelving for 18,400. Shipping charges were $ 370 and assembly and set up amounted to $575. The shelves are expected to the last nine years and have a scrap value of $800. Use a straight line method of depreciation, answer the questions round your answer to the nearest cent. A- what is the annual depreciation expense in dollars of the shelving? B-what is the accumulated depreciation in dollars after the third year? C-what is the book value of the shelving in dollars after the fifth year?
Oaktree Company purchased new equipment and made the following expenditures: Purchase price $45,000 2,200 Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment 700 900 1,000 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.
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 66,000 Sales tax 5,550 Shipment of machine 910 Insurance on the machine for the first year 610 Installation of machine 1,820 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
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.
A contractor purchased a Caterpillar D-13 dozer for$100,000 and owned it for five years. The annual cost for maintenance andrepair is provided in the Table. With annual interest rate at 7% and end-of-year disbursements, the uniform annual cost for maintenance and repair forthe dozer is most nearly: Do work by hand please.
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
Oaktree Company purchased new equipment and made the following expenditures:Purchase price $45,000Sales tax 2,200Freight charges for shipment of equipment 700Insurance on the equipment for the first year 900Installation of equipment 1,000The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The otherexpenditures listed above were paid in cash.Required:Prepare the necessary journal entries to record the above expenditures.
Copy equipment was acquired at the beginning of the year at a cost of $21,500 that has an estimated residual value of $2,000 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 975,000 copies. This year, 265,000 copies were made. a. Determine the depreciable cost. $ b. Determine the depreciation rate. Round your answer to two decimal places. $ per copy c. Determine the units-of-activity depreciation for the year.
White Mountain Supply Company purchases warehouse shelving for $18,400. Shipping charges were $370, and assembly and setup amounted to $375. The shelves are expected to last for 8 years and have a scrap value of $700: Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving)