Question: Dalton Resources Co purchased a machine for 15 000 terms 2 10
Dalton Resources Co. purchased a machine for $15,000, terms 2/10, n/60, FOB shipping point. The seller prepaid the freight charges, $260, adding the amount to the invoice and bringing its total to $15,260. The machine required a special steel mounting and power connections costing $795, and another $375 was paid to assemble the machine and get it into operation. In moving the machine onto its steel mounting, it was dropped and damaged. The repairs cost $190. Later, $120 of raw material was consumed in adjusting the machine so that it would produce a satisfactory product. The adjustments were normal for this type of machine and were not the result of the damage. However, the items produced while the adjustments were being made were not saleable. Prepare a calculation to show the cost of this machine for accounting purposes. (Assume Dalton Resources pays for the purchase within the discount period.)
Relevant QuestionsAfter planning to build a new plant, Kallisto Manufacturing purchased a large lot on which a small building was located. The negotiated purchase price for this real estate was $1,200,000 for the lot plus $480,000 for the ...At its December 31, 2013, year-end, Folkstone Apparel had a warehouse with an adjusted book value of $292,500 and an estimated remaining useful life of 15 years and residual value of $90,000. Because of pick-up and delivery ...The Jazz Antiquities purchased the copyright on a water color painting for $177,480 on January 1, 2014. The copyright legally protects its owner for 19 more years. However, Jazz plans to market and sell prints of the ...Jackal Energy purchased a transport truck on January 1, 2014, for $238,400 cash. Its estimated useful life is five years or 240,000 kilometers with an estimated residual value of $46,400.Required Calculate depreciation ...Required1. Calculate and record depreciation for the year just ended April 30, 2015, for both the building and equipment.2. Prepare the property, plant and equipment section of the balance sheet at April 30,2015.
Post your question