AC301_Unit_4_Finley_Joey_Property_Plant_and_Equipment_Acquisition_and_Disposal

# AC301_Unit_4_Finley_Joey_Property_Plant_and_Equipment_Acquisition_and_Disposal

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The Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of \$200,000 with terms of 2/10, n/30. The company paid the contract price on April 8 and also incurred installation and transportation cost of \$5,000, sales tax of \$10,000, and testing costs of \$2,000. During testing, the machine was accidentally damaged, so the company had to pay \$1,000 to repair it. Required Prepare the journal entry to record the acquisition of the machine. E10-3 Acquisition Costs

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Name: Joey D. Finley An asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still getting a red asterisk, and think the answer is correct, but used a formula in the cell try manually typing in the answer according to the rounding instructions. Required Prepare the journal entry to record the acquisition of the machine. Machine \$213,000 Repair Expense 1,000 Cash \$214,000 E10-3 Acquisition Costs
Name: Solutions An asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still getting a red asterisk, and think the answer is correct, but used a formula in the cell try manually typing in the answer according to the rounding instructions. Required Prepare the journal entry to record the acquisition of the machine. Machine \$213,000 Repair Expense 1,000 Cash \$214,000 E10-3 Acquisition Costs

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On August 2, 2010, Darmow Corporation purchased a new machine on a deferred payment basis. It made a down payment of \$1,000 and will make four monthly installments of \$2,500 each beginning on September 1, 2010. The cash equivalent price of the machine was \$9,500. Darmow incurred and paid installation costs amounting to \$300. Required Prepare the journal entry to record the acquisition of the machine. E10-5 Determination of Acquisition Cost
Name: An asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still getting a red asterisk, and think the answer is correct, but used a formula in the cell try manually typing in the answer according to the rounding instructions.

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