Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The question is at the top, I just need to know if my work is correct Option #2: Acquisition Costs. Equipment Acme Boxplant purchased new

image text in transcribedimage text in transcribedimage text in transcribed

The question is at the top, I just need to know if my work is correct

Option #2: Acquisition Costs. Equipment Acme Boxplant purchased new equipment for their box plant. One item was a die cut machine and the other, a corrugator. Both machines are used to manufacture boxes. The die cut machine costs $900,000, and the corrugator costs $1.5 million. Acme purchased the equipment, including the sales tax, on account, with amounts due in 45 days. Additional costs were paid in cash Die Cut Machine Sales tax Freight charges $54,000 55,000 8,500 75,000 Insurance Installation of the die cut Corrugator Sales tax Freight charges Insurance Installation of the corrugator Personnel training costs to run machine Trial Runs $90,000 55,000 8,500 75,000 50,000 10,000 uestions 1 & 2 Capitalize Die Cut Machine Items Purchase Price Sales Tax Freight Charges Installation 900,000 $54,000 $55,000 75,000 0 $1,084,000 Total cost Capitalize Corrugator Machine Items Purchase Price Sales Tax Freight Charges Installation Trial Run $1,500,000 90,000 55,000 75,000 10,000 0 0 Total cost $1,730,000 uestion 3 Journal Entries Die Cut Machine $1,084,000 Accounts Payable Cash $954,000 $130,000 To purchase and capitalize Die Cut machine Corrugator $1,730,000 Accounts Payable Cash $1,590,000 $140,000 To purchase and capitalize Corrugator machine

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Systems Audit In Banking Sector A Study Of SBI And ICICI Banks

Authors: C. Mallesha, M. Sulochana

1st Edition

6200254397, 978-6200254399

More Books

Students also viewed these Accounting questions

Question

4. Describe cultural differences that influence perception

Answered: 1 week ago