__________ begins with new-product purchases first by innovators and then by early adopters.

Beaverton Lumber purchased a milling machine for $35,000. In addition to the purchase price, Beaverton made the following expend

salantis [7]

Answer:

$41,500

Explanation:

Calculation to determine What was the initial cost of the machine to be capitalized

Purchase price $35,000

Add Freight $1,500

Add Installation $3,000

Add Testing $2,000

Total Cost $41,500

Therefore the initial cost of the machine is $41,500

3 0

2 years ago

Sandhill uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (

miskamm [114]

Answer:

$567,056

Explanation:

Cost :

Merchanidize available for sale

= Beginning inventory + Purchases + Freight in

= $386,000 + $1,975,000 + $125,000

= $2,486,000

Retails:

Merchandize available for sale:

= Beginning inventory + Purchases + Markups

= $590,000 + $3,220,000 + $68,000

= $3,878,000

Ending inventory at retail = Retail total -markdowns - Net sales

= $3,878,000 - $104,000 - $2,920,000

= $854,000

Cost to retail ratio = $2,486,000 ÷ ($2,920,000 + $854,000)

= $2,486,000 ÷ $3,744,000

= 66.40%

Ending inventory at retail = $854,000

And

Cost to retail ratio = 66.40%

Therefore,

Ending inventory at cost = $854,000 × 66.40% = $567,056

4 0

2 years ago

SANDHILL CO. Trial Balance August 31, 2017 Before Adjustment After Adjustment Dr. Cr. Dr. Cr. Cash $10,890 $10,890 Accounts Rece

ziro4ka [17]

Answer Explanation:

We match each debit change, with a credit to create an understandable entry.

Salaries and Wages Expense 1,320 debit

Salaries and Wages Payable 1,320 credit

to record accrued salaries for the period

depreciation expense 1,200 debit

accumulated Depreciation - Equipment 1,200 credit

to record depreciation for the year

Supplies Expense 1,050 debit

Supplies 1,050 credit

to record use of supplies for the year

Insurance Expense 1,490 debit

Prepaid Insurance 1,490 credit

to record expired insurance

Unearned Rent Revenue 1,030 debit

Rent Revenue 1,030 credit

to record accrued rent for the period

Account Receivable 660 debit

Service Revenue 660 credit

to record unrecorded service revenue

4 0

3 years ago

On November 1, 2021, Aviation Training Corp. borrows $51,000 cash from Community Savings and Loan. Aviation Training signs a thr

nekit [7.7K]

Answer:

1. November 01,2021

Dr Cash 51000

Cr Notes Payable 51000

2. December 31,2021

Dr Interest expense 510

Cr Interest Payable 510

3. February 01,2022

Dr Interest expense 510

Dr Interest Payable 255

Dr Notes Payable 51000

Cr Cash 51,765

Explanation:

Preparation of to record the necessary entries

1. November 01,2021

Dr Cash 51000

Cr Notes Payable 51000

(Being to Record the issuance of note)

2. December 31,2021

Dr Interest expense 510

(51,000*6%*2/12)

Cr Interest Payable 510

(Being to record the adjustment for interest)

3. February 01,2022

Dr Interest expense 510

Dr Interest Payable 255

(51,000*6%*1/12)

Dr Notes Payable 51000

Cr Cash 51,765

(510+255+51000)

(Being to Record the repayment of the note at maturity)

6 0

2 years ago

Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $7,000,000 to buy t

AVprozaik [17]

Answer:

A) -$10,020,000

Explanation:

Year 0 cash flow = -(Cost of Machine + Installation Cost + Clean Room Cost)

Year 0 cash flow = -($7,000,000 + $20,000 + $3,000,000)

Year 0 cash flow = -$10,200,000

So, the incremental free cash flows associated with the new machine in year 0 is ($10,200,000).

4 0

2 years ago