Orion Flour Mills purchased a new machine and made the following expenditures: ...

Orion Flour Mills purchased a new machine and made the following expenditures:


Purchase price	$61,000
Sales tax	5,300
Shipment of machine	860
Insurance on the machine for the first year	560
Installation of machine	1,720

The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.

Record the above expenditures for new machine.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Abbott Landscaping purchased a tractor at a cost of $39,000 and sold it three years later for $19,800. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,500 residual value. Tractors are included in the Equipment account.

1.Record the sale.

2. Assume the tractor was sold for $12,400 instead of $19,800. Record the sale

Solutions

Expert Solution

ekkarill92 answered 9 months ago

Next > < Previous

Related Solutions

Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 50,000 Sales tax...

Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 50,000 Sales tax 2,700 Freight charges for shipment of equipment 750 Insurance on the equipment for the first year 950 Installation of equipment 1,500 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a...

A company made the following expenditures in connection with the construction of its new building: Architect’s...

A company made the following expenditures in connection with the construction of its new building: Architect’s fees for the new building $25,000 Cash paid for land and run-down building on the land 425,000 Removal of old building 17,500 Salvage from sale of old building materials 6,000 Construction survey to site the new building 3,500 Legal fees for title search 4,500 Excavation for basement construction 45,500 Machinery purchased for operations 250,000 Storage charges on machinery because building was not ready when...

Tonga Corporation incurred the following expenditures to purchase a new machine: $100,000 purchase price, $12,000 for...

Tonga Corporation incurred the following expenditures to purchase a new machine: $100,000 purchase price, $12,000 for delivery of the machine, $5,000 for installation and testing of the machine, $4,000 to train staff to run the machine. In addition, the firm paid $2,000 to reinforce the factory floor to support the machine’s weight. They also paid $20,000 to repair the factory roof, extending the life of the factory by 4 years and $10,000 to create office space for the supervisor of...

Question 6 ASL Woollen Mills purchased a weaving machine on 2 July 2018 with a list...

Question 6 ASL Woollen Mills purchased a weaving machine on 2 July 2018 with a list price of $156,090. Additional costs associated with the purchase of the machine included freight $5,610, insurance in transit $737. An additional $2,530 was paid to repair damage caused during installation of the weaving machine. ASL Woollen Mills also signed a 12-month maintenance agreement for $3,300 which was paid in cash. All costs are shown as GST inclusive. ASL paid $60,000 cash and obtaining a 5-year loan...

Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates:...

Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In 2019, Gruman uses the machine for 2,000 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,200 hours and produces 32,000 units. If required, round your final answers to the nearest dollar. Required: Compute the depreciation for 2019 and 2020 under each of the following methods:...

Robert purchased a new copy machine for his business. The copy machine was purchased for $10,000...

Robert purchased a new copy machine for his business. The copy machine was purchased for $10,000 and is expected to generate the following cash flows for the next four years: Year 1:$3000, Year 2:5000, Year 3: 3600, Year 4: 1500. Assume the copy machine can be sold for $1800 at the end of year 4. Robert’s required rate of return is 5%. What is the net present value and should the machine be purchased? What is the internal rate of...

There are two parts to this problem a) & b) A company made the following expenditures...

There are two parts to this problem a) & b) A company made the following expenditures in connection with the construction of a new building: Architect’s fees $12,000 Cash paid for land and unusable building on the land 300,000 Removal of old building 18,000 Salvage from sale of old building materials -4,000 Construction survey 1,500 Legal fees for title search 3,000 Excavation for basement construction 25,000 Machinery purchased for operations 100,000 Freight on machinery purchased 1,600 Construction costs of new...

the price of oman flour mills share went up from 465baisa to 880 bisa in 2016,...

the price of oman flour mills share went up from 465baisa to 880 bisa in 2016, futher went up 910 baisa in 2017 and dropped to 520 in 2018. The best measure of return for a investor investing during this period is Select one: a. None of these b. Variance c. Geometric Mean d. Arithmetic Mean e. Standard deviation

On January 1, 2020, Concord Corporation purchased a new machine for $4130000. The new machine has...

On January 1, 2020, Concord Corporation purchased a new machine for $4130000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $143000. Depreciation was computed using the sum-of-the-years'-digits method. What amount should be shown in Concord's balance sheet at December 31, 2021, net of accumulated depreciation, for this machine? $2535200 $3987000 $3332600 $2623800

SBS Company purchased a new machine on January 1, at a cost of $420,000. The machine...

SBS Company purchased a new machine on January 1, at a cost of $420,000. The machine has an expected useful life of four years and an expected salvage value of $40,000. The company expects to use the machine for 1,300 hours in the first year, 1,900 hours in the second year, and 900 hours in the third and fourth year, respectively. (a) Calculate Depreciation Expenses for each year using Straight-Line Method Year Depreciation Expenses 1 $ 2 $ 3 $...

Subjects