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Unformatted text preview: Assignment: Hom ework Chapter 10 &gt;&gt; Additional Resources &lt;&lt; &gt;&gt; Additional Resources &lt;&lt; Score for selected take: 100% (10/10) Time spent on selected take: 8 hours, 20 minutes, 57 seconds Student: Shivashankari Velm urugan A ssignment score: 100% Total Time spent: 8 hours, 20 m inutes, 57 seconds 1. Your answer: Exercise 10-1 Costs of acquiring fixed assets Catherine Simpkins owns and operates Speedy Print Co. During February, Speedy 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. a. Indicate which costs incurred in acquiring the new printing press should be debited to the asset account. Item Debited to asset account 1. Sales tax on purchase price Yes 2. Freight Yes 3. Special foundation Yes 4. Insurance while in transit Yes 5. New parts to replace those damaged in unloading No 6. Fee paid to factory representative for installation Yes b. Indicate which costs incurred in acquiring the used printing press should be debited to the asset account. Item Debited to asset account 7. Fees paid to attorney to review purchase agreem ent Yes 8. Freight Yes 9. Installation Yes 10. Repair of vandalism during installation No 11. Replacement of worn-out parts Yes 12. Repair of damage incurred in reconditioning the press No 2. Your answer: Exercise 10-2 Determine cost of land Bridger Ski Co. has developed a tract of land into a ski resort. The company has cut the trees, cleared and graded the land and hills, and constructed ski lifts. a. Should the tree cutting, land clearing, and grading costs of constructing the ski slopes be debited to the land account? Yes b. If such costs are debited to Land, should they be depreciated? No Integrated eText Objective 1 1/22/2011 Homework Chapter 10 cengagenow.com//viewAssignmentP 1/6 &gt;&gt; Additional Resources &lt;&lt; &gt;&gt; Additional Resources &lt;&lt; &gt;&gt; Additional Resources &lt;&lt; 3. Your answer: Exercise 10-6 Capital expenditures and revenue expenditures Easy Move Company made the following expenditures on one of its delivery trucks: Prepare the journal entries for each expenditure....
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This note was uploaded on 03/26/2012 for the course ACCOUNTING 1A,1B,1C taught by Professor Spinozzi during the Summer '10 term at DeAnza College.
- Summer '10