The O'Hannigan Company of Edmonton made the following transactions relating to property, plant, and equipment during 2012.
Question:
Transcribed Image Text:
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
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
2014 Account Titles and Description Post Ref Dr Cr Jul 8 Machinery 4 5 0 0 0 0 0 Accumulated ...View the full answer
Answered By
Salmon ouma
I am a graduate of Maseno University, I graduated with a second class honors upper division in Business administration. I have assisted many students with their academic work during my years of tutoring. That has helped me build my experience as an academic writer. I am happy to tell you that many students have benefited from my work as a writer since my work is perfect, precise, and always submitted in due time. I am able to work under very minimal or no supervision at all and be able to beat deadlines.
I have high knowledge of essay writing skills. I am also well conversant with formatting styles such as Harvard, APA, MLA, and Chicago. All that combined with my knowledge in methods of data analysis such as regression analysis, hypothesis analysis, inductive approach, and deductive approach have enabled me to assist several college and university students across the world with their academic work such as essays, thesis writing, term paper, research project, and dissertation. I have managed to help students get their work done in good time due to my dedication to writing.
5.00+
4+ Reviews
16+ Question Solved
Related Book For
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker
Question Posted:
Students also viewed these Accounting questions
-
The following accounts, with the balances indicated, appear in the ledger of South Mountain CableView Co. on December 1 of the current year: Salaries Payable ............. FICA Tax Payable .............
-
Eastern State College had the following trial balance as of July 1, 2011, the first day of its fiscal year (in thousands): During the fiscal year ended June 30, 2012, the following transactions...
-
The following expenditures relating to property, plant, and equipment were made by Bachinski Ltd.: 1. Paid $1.2 million for a plant site. 2. Paid $8,000 of legal fees on the purchase of the plant...
-
Devils Tower National Monument in Wyoming became America's first national monument in 1906. This rock formation has a height of 867 feet and is a popular climbing site. It was also used as the alien...
-
The days to maturity for a sample of five money market funds are shown here. The dollar amounts invested in the funds are provided. Use the weighted mean to determine the mean number of days to...
-
Car A weighing 3200 lb and traveling north at 20 mi/hr collides with car B weighing 3600 lb and traveling at 30 mi/hr as shown. If the two cars become entangled and move together as a unit after the...
-
A V-belt is specified by the (a) outside length (b) pitch length (c) inside length (d) average length
-
Guidecom Consulting Company initially records prepaid items as assets and unearned items as liabilities. Selected account balances at the end of the current and prior year follow. Accrued expenses...
-
what ways does hazard analysis play a role in the design and implementation of safety instrumented systems (SIS), particularly in determining Safety Integrity Levels (SILs) and developing safety...
-
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials $...
-
Journalize the following transactions for the Robe Company of Yorktown and below each entry show all calculations: 2014 Jan. Sold a truck for $3,600 that cost $12,800 and had accumu- lated...
-
At the end of month three of its fiscal year, on March 29, 2013, the Abrahmson Company of Winnipeg purchased a new wave-soldering machine that complies with the standards needed to fabricate parts...
-
Tony Sporting Goods is embarking on a massive expansion. Assume plans call for opening 20 new stores during the next two years. Each store is scheduled to be 30% larger than the companys existing...
-
Three point charges, +5.8 C, +2.4 C, and -2.4 C, lie along the x-axis at 0 cm, 2.4 cm, and 5.7 cm, respectively. What is the force exerted on q by the other two charges? (To the right is positive.)...
-
How much energy does a refrigerator have to remove from 2 . 0 2 . 0 kg of soup at 2 0 . 0 2 0 . 0 deg C to make it 1 5 . 0 - 1 5 . 0 deg C ? ( ? ( Assume that the soup can be approximated as...
-
1 . Suppose we have two infinite planes. One is the x - y plane, and the other is parallel, but goes through z = 2 5 cm . a . If the plane at 2 5 cm is at 1 0 Volts, and the plane at 0 cm is at 0...
-
In the nation of Wakanda, GDP is $ 5 0 0 billion, Exports are $ 5 0 billion, Consumption is $ 3 7 0 billion, Investment is $ 1 2 0 Billion, and Government Spending is $ 3 0 billion then what would...
-
In 2020, new 5G compatible cell phones become available. For a given supply, the equilibrium price of a cell phone A. falls and the equilibrium quantity increases if the demand for cell phones...
-
In the 1700s, the French physicist Reaumur established a temperature scale on which the freezing point of water was 0 and the boiling point was 80 . Set up an equation for the Fahrenheit temperature...
-
Determine which of the following limits exist. Compute the limits that exist. lim x-0 1- + 3x X
-
From the following partial mixed list, select the appropriate titles and prepare a stockholders' equity section using the source-of-capital approach as shown in the Blueprint example for Argon...
-
Lynch Corporation was just issued a charter by the state of New York. This charter gives Lynch the authority to issue 350,000 shares of $6 par-value common stock. From the following transactions: 1....
-
The following is the Paid-In Capital section of stockholders' equity for the Kodokan Corporation on June 1, 201X: Paid-In Capital: Preferred Stock, $92 par, authorized 21,000 shares, 6,000 shares...
-
How do advanced deadlock detection algorithms operate within large-scale systems, and what are the trade-offs between computational complexity and the speed of deadlock resolution ?
-
Provide an example of typical consumers of energy in real life. Discuss their motives for energy consumption based on economic behavioral models.
-
How does the concept of a "deadlock-free" system align with the practical realities of resource management in operating systems, and what are the potential drawbacks of striving for complete deadlock...
Study smarter with the SolutionInn App