Sicily Pizza purchased baking ovens from New World Deli. New World Deli was closing its bakery business

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Sicily Pizza purchased baking ovens from New World Deli. New World Deli was closing its bakery business and sold its three-year-old ovens for $300,000. In addition to the purchase price, Sicily Pizza paid shipping costs of $15,000. Employees of Sicily Pizza installed the ovens; labor costs were $16,000. An outside contractor performed some of the electrical work for $2,800. Sicily Pizza consumed pizza dough with a cost of $1,200 in testing the ovens. It then installed new timers on the ovens at a cost of $700 and placed the machines in operation.
Required:
1. Prepare a schedule showing the amount at which Sicily Pizza should record the ovens in the Equipment account.
2. Indicate where any amounts not included in the Equipment account should be recorded.
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780078110825

2nd Edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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