The O'Hannigan Company of Edmonton made the following transactions relating to property, plant, and equipment during 2012.
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2012 Jan. 26 Purchased land and a building for $780,000. In addition to this actual purchase amount, the total cost of the purchase included legal fees of $6,800, an appraisal fee of $3,600, a survey certificate of $4,200, and GST of $39,730. One cheque (No. 4772) for the total of the amounts listed $834,330) was issued to Humboldt and Lim, Barristers and Solicitors. The appraisal determined that 40% of the total purchase price was for the land, while the rest was for the buildin Purchased a new metal lathe from Hanover Ltd. of Germany. The purchase price was 265,000 euros, which at the current exchange rate equates to $347,400 Canadian Wrote cheque No. 4816 to cover this purchase. Delivery is expected in mid-April. The company wants to keep the cost of this major asset separate from all other machinery Purchased four used metalworking machines from Parmar and Sons, Auctioneers in Grande Cache. Total purchase price was $146,500, plus GST of $7,325 (cheque No. 4907). Main land Transport will deliver the four machines in three days The four machines mentioned above were delivered, and Mainland Transport requested and got a cheque for the freight-$4,885, plus GST of $244.25 (cheque No. 4988) Eastern Renovations Ltd. completed an extensive renovatior of the building purchased Jan. 26. Wrote cheque No. 5033 -$57,500, plus GST of $2,875 for the job, which got the building ready for occupanc Wrote cheque No. 5079 for $5,000, plus GST of $250, to McReady Concrete Ltd. to pay for concrete bases for the four machines purchased at auction, as well as for the new German lathe expected to arrive next week. Estimated that 70% of this cost is for the concrete base for the lathe, while the rest is for concrete bases for the other four machines Mar. 14 Mar. 22 Mar. 27 Apr. 2 Apr. 5 Apr 9 Wrote cheque No. 5122 to Liberty Millwrights for installing the four machines purchased at auction-$8,600, plus GST of $430 Intercontinental Brokers Ltd. faxed an invoice that covered: import duties on the metal lathe ($7,300); transportation charges from Germany to Edmonton ($24,550); GST charges on the purchase price plus duties and transportation totalling $28,693; plus its own fee for handling the entire importation process $3,000, plus requested that a cheque be prepared to cover all of these amounts (except the lathe purchase price, which was paid separately), and cheque No. 5185 d delivered in the amount of $63,693 Another cheque to Liberty Millwrights for installing the German lathe The company's controller calculated that of the total payroll for April, $11,400 was paid to employees who worked on calibrating and doing final adjustments on the four auction machines. The controller also calculated that a further $8,775 represented wages to calibrate, adjust, and program the computer-controlled feature of the new lathe. Up to this point, all wages have been debited to Wages Expense Purchased a computer-controlled module to replace a manual part on one of the machines bought at auctiorn Cheque No. 5472 to Lifetime Maximum Machinery Ltd was for $12,600, which included installation, testing and 5% GST. This greatly expands the capability and speed of the machine to which it is attached Apr. 12 GST of $150). It was prepared, signed, an Apr. 20 $14,000, plus GST of $700 (cheque No. 5336) Apr. 30 June 19 Tuly 13 A careless employee stripped the drive gear assembly of the new German lathe. Repairs cost $8,000, plus GST of $400 payable to Action Machinery Ltd. (cheque No. 5504). Such repairs, while unfortunate, are far from unusual, and are expected to happen occasionally. Paid (cheque No. 5709) Acme Roofing Ltd. $60,000, plus GST of $3,000 for emergency installation of a new metal roof, because a storm destroyed the old, shingled roof. After careful consideration, it was determined that one-third of the cost of the new roof represents ordinary repairs, while the balance is considered the cost of a major roof improve- ment. Oct. 23
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College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
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