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ZanzabumX [31]
3 years ago
10

Point Company paid $4,000 cash to purchase a new machine. The company also paid $500 cash for an initial training cost that was

necessary to teach an employee how to operate the machine. Which of the following represents the journal entry that would be necessary to record all capitalized costs related to the purchase of the machine?debit machine (4500), credit cash (4500)
Business
1 answer:
spin [16.1K]3 years ago
4 0

Answer:

Dr Machinery $4500

Cr Cash                      $4500

Explanation:

The reason is that the Internation Accounting Standard IAS 16 Property, Plant & Equipment says that the company must capitalized all those costs that are necessary to make the asset ready to use which means that the cost of training which is $500 and purchasing cost which is $4000 must be capitalized as part of the asset.

So the entry would be:

Dr Machinery $4500

Cr Cash                      $4500

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Answer:

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Explanation:

  • Trademark is the symbol, sign, expression or design that signifes the products or services of particular company.
  • Trademarks that signifies particular company or service mark if it signifies services, is an intellectual property which no other source can use without permission.
  • Brand name is the name of the company that develops the product or service obtained which are also named with the same.
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3 years ago
Suppose your bank pays you 4 percent interest per year on your savings​ account, so that​ $1,000 grows to​ $1,040 over a oneminu
Fed [463]

Answer:

3 percent which is $30

Explanation:

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If the bank pays an interest rate of 4  percent, which leads to an increase of savings from $1000 to  $1040, should prices increase by 1 percent, then the real value of money has increased by 3 percent. One percent increase in prices represents inflation.  Keeping $1000 in the bank will earn a 3 percent real value or $30.

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3 years ago
According to the text, there are four different aspects of a decision that a business should evaluate in order to___ maximize pr
inna [77]

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