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Rizio Co. purchases a machine for $13,400, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $268 discount. Transportation
Rizio Co. purchases a machine for $13,400, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $268 discount. Transportation costs of $303 were paid by Rizio. The machine required mounting and power connections costing $926. Another $437 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $335 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Less: Discount Net purchase price Total cost to be recorded Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. Land is appraised at $215,000; land improvements are appraised at $43,000; and a building is appraised at $172,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Appraised Value Percent of Total Appraised Value x Total Cost of Acquisition = Apportioned Cost Land Land improvements Building Totals Required 1 Required 2 > View transaction list Journal entry worksheet Record the costs of lump-sum purchase. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
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