On July 1, An entity purchased a machine worth 21,000, 000 subject to a 2% cash discount if paid within 120 days. Freight on the machinery amounted to P315,000. Construction of bases for such machine acquired amounted to P4,050,000. On November 15, the entity paid the supplier of the machine. How much is the total cost of the machine to be reported in the year-end statement of financial position ?
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On July 1, An entity purchased a machine worth 21,000, 000 subject to a 2% cash discount if paid within 120 days. Freight on the machinery amounted to P315,000. Construction of bases for such machine acquired amounted to P4,050,000. On November 15, the entity paid the supplier of the machine. How much is the total cost of the machine to be reported in the year-end
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- Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.Transactions for 2021 were as follows: An new elevator system costing P800,000 was installed on the company’s Office Building and was completed in early January. On March 31, the company traded a new factory machinery with a cash price of P6M for one of its old Factory Machinery with an original cost of P4M. The trade-in value agreed upon on the old machinery was at P2.2M. The company paid the difference in cash. On September 1, a piece of office equipment was sold for P2M. The office equipment had an original cost of P3.2M. On October 31, a replacement office equipment was acquired on installment basis. A P500,000 down-payment was made plus a P3M note payable in three equal installments starting October 31, 2022. The interest rate appropriate for this transaction was ascertained at 10%. Installation and commissioning cost were incurred at P65,890. Estimated decommissioning cost upon retirement was also estimated at P101,302.What is the gain on sale of the office equipment on…Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 1. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one- year, 9% note for the balance. 2. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 3.
- Transactions for 2021 were as follows: An new elevator system costing P800,000 was installed on the company’s Office Building and was completed in early January. On March 31, the company traded a new factory machinery with a cash price of P6M for one of its old Factory Machinery with an original cost of P4M. The trade-in value agreed upon on the old machinery was at P2.2M. The company paid the difference in cash. On September 1, a piece of office equipment was sold for P2M. The office equipment had an original cost of P3.2M. On October 31, a replacement office equipment was acquired on installment basis. A P500,000 down-payment was made plus a P3M note payable in three equal installments starting October 31, 2022. The interest rate appropriate for this transaction was ascertained at 10%. Installation and commissioning cost were incurred at P65,890. Estimated decommissioning cost upon retirement was also estimated at P101,302. A. What is the correct initial cost of the replacement…Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 1. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one- year, 9% note for the balance. 2. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 3. (a) Prepare the journal entries necessary to record the transactions above using appropriate dates. Company uses the periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit > >UMPI Corporation purchased conveyor equipment with a list price of $15,000. Presented below are three independent cases related to the equipment. (Round to the nearest dollar.) Instructions: Prepare the general journal entries required to record the acquisition and payment in each of the independent cases below. 6.1 UMPI paid cash for the equipment 8 days after the purchase. The vendor’s credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross. 6.2 UMPI traded in equipment with a book value of $2,000 (initial cost $8,000), and paid $8,500 in cash. The old equipment could have been sold for $1,400 at the date of trade. (The exchange did have commercial substance.) 6.3 UMPI signed an interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time.
- On January 1, 2022, Collide Company purchased a machine from a supplier which trade discount of 10%. An additional 4% cash discount if the account is within 30 days form the date of invoice. The machinery will be used for 6 years. Information related to this acquisition were as follows: List price of the machine acquired P4,000,000 Freight, unloading, and delivery charges for machinery acquired 110,000 Custom duties and other charges for machinery acquired 480,000 Allowances and hotel accommodation paid to foreign technicians during installation and test run of machine 600,000 Cost of training for personnel who will use the machine 230,000 How much is the cost of the machine?On October 1, 2022, Vertical Company purchased a machine from a supplier which trade discount of 10%. An additional 4% cash discount if the account is within 30 days form the date of invoice. The machinery will be used for 6 years. Information related to this acquisition were as follows: List price of the machine acquired P4,000,000 Freight, unloading, and delivery charges for machinery acquired 110,000 Custom duties and other charges for machinery acquired 480,000 Allowances and hotel accommodation paid to foreign technicians during installation and test run of machine 600,000 Cost of training for personnel who will use the machine 230,000 How much is the cost of the machine?Kervin Company acquired three items of machinery as follows: During 2021, the entity purchased a machine for P500, 000 down and four monthly installments of P1, 250, 000. The cash price of the machine was P4, 700, 000. On January 1, 2021, the entity purchased a machine for P2, 000, 000 in exchange for a noninterest bearing note requiring four payments of P500, 000. The first payment was made on January 1, 2021. The rate of interest for this note at date of issuance was 10%. The present value of an ordinary annuity of 1 at 10% is 3.17 for four periods. The present value of an annuity of 1 in advance at 10% is 3.49 for four periods. On January 1, 2021, the entity acquired a machine by issuing a four-year, noninterest bearing note for P2, 000, 000. The note is due on January 1, 2025. The entity has a 10% interest for this type of note. The present value of 1 at 10% for 4 years is 0. 68. What is the total cost of the three machines?
- Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. The equipment was purchased on account for $43,000 Credit terms were 310/, n30/. Payment was made within the discount period and the company records the purchases of equipment net of discounts. Connors gave the seller a noninterest-bearing note. The note required payment of $45,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 12% properly reflects the time value of money in this situation, Connors traded in old equipment that had a book value of $15,000 ( original cost of $32, 000 and accumulated depreciation of $17,000) and paid cash of 540,000. The old equipment had a fair value of $9, 700 on the date of the exchange. The exchange has commercial substance. Connors issued 2, 000 shares of its no-par common stock in exchange for the equipment. The market value of…Excess Construction Corp. has a $16 million contract to construct a building. The company estimates $10.4 million in costs to construct the building and an expected gross profit of $5.6 million. During the current year, the company incurred $3,120,000 of costs on the contract. Under the percentage-of-completion method, how much will Excess Construction Corp. report as revenue in the current year?- Keep questions specific and include all details. On February 1,2021, the entity purchased equipment amounting to P400,000 with 2/10 n/30 terms. The delivery cost is P100,000 . The entity paid after 30 days. How much is the cost of equipment? O 392,000 O 400,000 O 492,000 O 500,000