On the 1st of Jan 2023, ABC Company purchased equipment from the UK for a listed...

 

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On the 1st of Jan 2023, ABC Company purchased equipment from the UK for a listed price of 200,000 KD with 10%. The company also paid the following expenses: 5,000 KD freight and insurance in transit - 30,000 KD customs and taxes - 1,000 KD transportation to the factory site 500 KD handling - - 5,500 KD cost of assembling and installing 2,000 KD replacing an important part of the equipment that was broken during the installment 3,000 KD training expenses for two employees on how to operate the equipment. 1,000 KD costs of conducting a trial run 500 KD one-year insurance against fire and theft In addition, the company took a loan of 100,000 KD to finance the purchase of this equipment with a total interest of 10,000 KD and paid another 3,000 KD training expenses for another two employees on the 1st of June 2023. Required: 1. Calculate the cost of this equipment 2. Journalize the required entry for the initial recognition of this equipment On the 1st of Jan 2023, ABC Company purchased equipment from the UK for a listed price of 200,000 KD with 10%. The company also paid the following expenses: 5,000 KD freight and insurance in transit - 30,000 KD customs and taxes - 1,000 KD transportation to the factory site 500 KD handling - - 5,500 KD cost of assembling and installing 2,000 KD replacing an important part of the equipment that was broken during the installment 3,000 KD training expenses for two employees on how to operate the equipment. 1,000 KD costs of conducting a trial run 500 KD one-year insurance against fire and theft In addition, the company took a loan of 100,000 KD to finance the purchase of this equipment with a total interest of 10,000 KD and paid another 3,000 KD training expenses for another two employees on the 1st of June 2023. Required: 1. Calculate the cost of this equipment 2. Journalize the required entry for the initial recognition of this equipment

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Answer To calculate the cost of the equipment we need to sum up all the expenses associated with its ... View the full answer