Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased a...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ddff579bde_637664ddff5197a1.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ddff61ab64_637664ddff5a8523.jpg)
Transcribed Image Text:
Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,820. The seller agreed to allow a 6.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,430. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,190. The loader operator is paid an annual salary of $10,780. The cost of the company's theft insurance policy increased by $1,710 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $6,200. Required a. Determine the amount to be capitalized in an asset account for the purchase of the loader. b. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount to be capitalized in an asset account for the purchase of the loader. (Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.) Costs that are to be capitalized: List price Total costs $ 0 Required A Required B > Required A Required B Record the purchase in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet < A B C Record purchase of equipment for cash. Note: Enter debits before credits. Event 1 General Journal Debit Credit: Record entry Clear entry View general journal Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,820. The seller agreed to allow a 6.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,430. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,190. The loader operator is paid an annual salary of $10,780. The cost of the company's theft insurance policy increased by $1,710 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $6,200. Required a. Determine the amount to be capitalized in an asset account for the purchase of the loader. b. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount to be capitalized in an asset account for the purchase of the loader. (Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.) Costs that are to be capitalized: List price Total costs $ 0 Required A Required B > Required A Required B Record the purchase in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet < A B C Record purchase of equipment for cash. Note: Enter debits before credits. Event 1 General Journal Debit Credit: Record entry Clear entry View general journal
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
If OPEC raised the price of oil high enough, would that be sufficient to promote an efficient energy mix?
-
Determine the composition range in which the Tl-Pb alloy at 350 C is (a) Fully liquid; (b) Fully solid;
-
Many programming teams work independently at a large software company. The management has been putting pressure on these teams to finish a project on time. The company currently has 18 large...
-
Roya and Sashi are performing a financial check-up. They are trying to decide how much money to put into an emergency fund and what type of account to open. The couple has \($3,000\) in take-home pay...
-
Consider the following independent situations. Situation 1: Ducharme Corporation purchased electrical equipment at a cost of $12,400 on June 2, 2014. From 2014 through 2017, the equipment was...
-
A direct materials flexible-budget variance is ______. Multiple select question. the difference between flexible budget cost and the master budget cost for direct materials calculated for each direct...
-
Exercise 1 1 - 2 ( Algorithmic ) ( LO . 2 ) Mio was transferred from New York to Germany. He lived and worked in Germany for 3 5 9 days in 2 0 2 2 . Mio's salary for 2 0 2 2 is $ 2 6 0 , 8 0 0 ....
-
If the numbers -2.5, -1.6, -31, 10, and -0.5 were graphed on a number line, which would appear farthest to the left?
-
What is the standard structure of a business memo, and how should each section be formatted to enhance readability and clarity? Discuss the role of headings, bullet points, and white space in memo...
-
On January 1 Primary Manufacturing had a beginning balance in Work-in-Process Inventory of $82,000 and a beginning balance in Finished Goods Inventory of $22,000. During the year, Primary incurred...
-
Len is a keen rugby fan. He sees this advertisement: Rugby World Cup in Australia Be There! See 8 rugby games including one semi-final and the final: Then spend 10 days touring the Australian Outback...
-
#2: If 2 masses 7 kg and 17 kg have velocities <6,-10 > and respectively, find the final velocities of the 17 kg objects a) Find the final velocity of the 5 kg object if the collision is elastic...
-
Write the model, specifications and company name of 5 NPN 5 PNP 5 P type MOSFET 5 N type MOSFET 5 IJBT 5 THYRISTOR 5 REGULATOR IC 5 OPAMPS and make a table for comparison. (30 Marks)
-
Should we separate the debt and equity features of convertible debt? Team 1: Pro separation: Present arguments in favor of separating the debt and equity features of convertible debt. Team 2: Against...
-
You have decided to diversify your investment portfolio. To research, compare a type of corporate bond with a type of government security.
-
The county in which Marie Kilbane lives is selling bonds to finance a new storm sewer system. Marie knows that the storm sewers need replacing because her street was flooded last week. At the same...
-
How could you use the Internet to help you learn about investing in bonds?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App