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lyudmila [28]
3 years ago
12

Southwest milling co. purchased a front end loader to move stacks of lumber. the loader had a list price of $117,270. the seller

agreed to allow 5.50 percent discount because southwest milling paid cash. delivery terms were FOB shipping point. Freight cost amounted to $2790. southwest milling had to hire a specialist to calibrate the loader. The specialist's fee was $990. The loader operator is paid an annual salary of $13,640. The cost of the company's theft insurance policy increased by $1,770 per year as a result of acquiring the loader. The loader had a four year useful life and an expected salvage value of $6,100.
a. Determine the amount to be capitalized in an assest accound for the purchase of the front end loader.
Business
1 answer:
Anastasy [175]3 years ago
6 0

Answer:

Total cost of front end loader in asset account $ 114,600

Explanation:

Computation of total costs of front end loader

List price of equipment                                                             $  117,270

Discount on cash payment = 5.5 %  ( $ 117,270 * 5.5 %)         <u>$ ( 6,450)</u>

Net price of equipment                                                             $ 110,820    

Freight in costs                                                                            $   2,790

Calibration costs                                                                         <u>$       990</u>

Total cost of front end loader in asset account                      $ 114,600

The other data items such as the loader salary and additional insurance

premium are annual costs and are thus not to be added to the cost of the equipment.  

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Bass new product forecasting model is used for estimating long term sales potential of a product True False
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Answer:

True

Explanation:

The Bass New forecasting model is a forecasting model that is commonly used to estimate the sales of a product at a certain in future and it is used for highly durable goods.

The bass new forecasting model wad developed by Frank Bass and it has a formula

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A command economy features:
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2 years ago
All of the following are true about the post-closing trial balance, except: a.It is prepared after posting the closing entries t
Dimas [21]

Answer:

All of the following are true about the post-closing trial balance, except:

d.It is prepared before the closing process.

Explanation:

The post-closing trial balance is rather prepared after the closing process.  This is the reason it is described as a post-closing trial balance.  Only permanent accounts (balance sheet) are listed on the post-closing trial balance.  The post-closing trial balance ensures that the capital account is updated with the retained earnings (net income less drawings), as the case may be.

3 0
3 years ago
Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 10 million cases of beer were sold ever
just olya [345]

Answer:

$5 per case

Explanation:

Calculation for what The amount of the tax on a case of beer is $ per case.

Using this formula

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Savory Co. sold $411,000 of equipment during January under a six-month warranty. The cost to repair defects under the warranty i
ch4aika [34]

Answer:

A.31-Jan

Dr Product Warranty Expense $30,825

Cr Product Warranty Payable $30,825

B. 15-Aug

Dr Product Warranty Payable $513

Cr Supplies $391

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Explanation:

a. Preparation of the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31

31-Jan

Dr Product Warranty Expense $30,825

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Cr Product Warranty Payable $30,825

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Dr Product Warranty Payable $513

($391+$122)

Cr Supplies $391

Cr Wages Payable $122

3 0
2 years ago
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