Question
Rizio Co. purchases a machine for $12,900, terms 2/10, n/60, FOB shipping point. The seller prepaid the $292 freight charges, adding the amount to the
Rizio Co. purchases a machine for $12,900, terms 2/10, n/60, FOB shipping point. The seller prepaid the $292 freight charges, adding the amount to the invoice and bringing its total to $13,192. The machine requires special steel mounting and power connections costing $892. Another $421 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $190 in damages occurred. Materials costing $40 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages. Complete the below table to calculate the cost recorded for this machine. (Rizio pays for this machine within the cash discount period.) (Negative amounts should be indicated by a minus sign.)
2. Liltua Company pays $310,000 for real estate plus $16,430 in closing costs. The real estate consists of land appraised at $215,000; land improvements appraised at $51,600; and a building appraised at $163,400.
Allocate the total cost among the three purchased assets. | ||||||
Land : Appraised Value Precent Total Appraised xTotal Cost of Acquistion =Apportione Cost Land Improvements: Building: Totals: 3. Prepare the journal entry to record the purchase 4.
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