Kelly Melnik owns and operates Aaladin Print Co. During July, Aaladin Print Co. incurred the following costs

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Kelly Melnik owns and operates Aaladin Print Co. During July, Aaladin Print Co. incurred the following costs in acquiring two printing presses. One printing press was new, and the other was used by a business that recently filed for bankruptcy.

Costs related to new printing press:

1. Sales tax on purchase price 2. Insurance while in transit 3. Freight 4. Special foundation 5. Fee paid to factory representative for installation 6. New parts to replace those damaged in unloading Costs related to used printing press:

7. Fees paid to attorney to review purchase agreement 8. Installation 9. Repair of vandalism during installation 10. Replacement of worn-out parts 11. Freight 12. Repair of damage incurred in reconditioning the press

a. Indicate which costs incurred in acquiring the new printing press should be debited to the asset account.

b. Indicate which costs incurred in acquiring the used printing press should be debited to the asset account.

objs. 4,5

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Financial Accounting

ISBN: 9780324380675

10th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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